Yum Brands Inc, the home of KFC and Pizza Hut, is falling behind rival McDonald’s Corp as the pair battle to revive flagging sales in China – a headache for Yum as it looks to spin off operations in its biggest market.
A Reuters analysis of same-store sales data suggests McDonald’s is recovering faster in China than larger rival Yum as both seek to bounce back from a slew of food safety scandals dating back to 2012.
McDonald’s said a week ago fourth-quarter same-store sales in China rose 4 percent, a second straight quarter of growth. Last week, Yum said its same-store sales, reflecting underlying growth, also returned to growth in the second half – but more slowly, leaving annual China sales falling for the first time.