LOUISVILLE, Ky. – Same-store sales for Yum! Brands Inc.’s China division climbed 5 percent in October on growth at KFC, the company said. But weakness in Pizza Hut offset the gain. October’s results included estimated growth of 10 percent at KFC and an estimated 9 percent decline at Pizza Hut. Same-store sales growth for the month came in slightly below September results of 6 percent, the company said.
“We are reiterating our guidance for the fourth quarter of China Division same-store sales growth of 0 percent to 4 percent, with positive same-store sales growth at KFC and negative same-store sales at Pizza Hut Casual Dining,” the company said in a filing with the Securities and Exchange Commission. “As previously stated, same-store sales remain difficult to forecast in China, and our overlaps become more difficult for the balance of year.”
Earlier this month, Yum announced plans to spin off its China business into a separate, publicly traded company. Yum! China will become a franchisee of Yum! Brands in mainland China and based in Shanghai. The transaction is expected to close by the end of 2016.