February 8, 2012                                            

KFC's China division reports 15% growth in operating profit

Kentucky Fried Chicken's (KFC) China division reported an increase of 15% in operating profit and 29% growth in system sales, the largest revenue driver for over 40% overall profits in Q4 2011.

Commenting on these results, Yum Brands CEO David C. Novak, said that the highlight of 2011 for his company was again the exceptional performance of its China business. Yum Brands is the parent company of KFC.

"We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category leading positions", he said.

Novak pointed out that Chinese demand for fast food chicken continues to grow as KFC same store sales also grew 22% in the fourth quarter.

In Q4 2011, Yum operated 3,701 KFC restaurants in China. Its number of KFC outlets in China grows at an yearly average of 14%.