Retail in Asia

In Sectors

McDonald’s recovers quicker than Yum in China

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.