KFC-owner sees sales boost in China after bucket promotion
KFC owner, Yum Brands, has seen a rise in profit, thanks in part to a chicken bucket deal over Chinese New Year.
The company reported an 8% increase in profit to $391m (£273m) for the first three months of 2016. Yum, which also owns Pizza Hut and Taco Bell, said sales at stores in China that have been open a year or more rose 6% compared to the same quarter last year. The news boosted Yum's shares by 4% in after-hours trading. Analysts had expected just a 2.1% growth in sales in China, where Yum is the biggest Western restaurant brand. Chief executive Greg Creed said: "KFC China had an outstanding Chinese New Year bucket promotion." "This is a transformational year for our company as we remain on track to finalise the separation of our China business by year end," Mr Creed said. Yum wants to spin-off its 6,900 China restaurants, its most profitable business, by the end of 2016 in order to focus the company on US operations. It has also been losing market share to rival McDonalds in China.