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YUM: KFC Plans Major Menu Makeover in China

Hopes to improve company image


Fast-food restaurant company YUM Brands (YUM) is pushing a KFC makeover in China following a 2012 food scare that moved customers away from the fried-chicken chain.

The overhaul will involve a revamped menu, Chinese celebs to tout the chain, and redesigned store and packaging — all with the hope of boosting revenues at Chinese restaurants that dropped 4% during the fourth quarter last year.

The fallout came about after state media reported that KFC chicken were fed excess antibiotics — with food safety advocates raising concerns about the health effects.

Yum is the largest fast-food chain in China — with some 6,200 stores. However, the company has seen its market share remain placid over the past five years (at 41.2% in 2012, according to research firm Euromonitor).

Last month, the company — which operates KFC, Pizza Hut and Taco Bell restaurant chains — posted fourth-quarter earnings that topped analysts forecasts. Earlier this month, YUM improved after an R.W. Baird research note changing its rating from “neutral” to “outperform.”

Still, YUM is down roughly 2% year-to-date.

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