Yum China sales fall more than expected in August

 A woman carries a tray of food inside a KFC restaurant in Beijing in this May 9, 2013 file photo. KFC parent Yum Brands Inc on Friday said August sales at established restaurants in China fell an estimated 10 per cent, as it works to recov
 A woman carries a tray of food inside a KFC restaurant in Beijing in this May 9, 2013 file photo. KFC parent Yum Brands Inc on Friday said August sales at established restaurants in China fell an estimated 10 per cent, as it works to recover from a food safety scare and a bird flu outbreak that crushed sales in its most important market. -- FILE PHOTO: REUTERS

(REUTERS) - KFC parent Yum Brands Inc on Friday said August sales at established restaurants in China fell an estimated 10 per cent, as it works to recover from a food safety scare and a bird flu outbreak that crushed sales in its most important market.

Eight analysts, on average, had expected August sales to fall 7.7 per cent, according to Consensus Metrix.

Yum generates more than half of its overall operating profit in China, where it is the biggest Western restaurant operator with roughly 6,000 mostly KFC restaurants. Late last year its China restaurant sales tumbled after a scare over chemical residues in chicken. That was followed by a bird flu outbreak.

Yum, which also owns the Taco Bell and Pizza Hut chains, expects China restaurant sales growth to resume in the fourth quarter.

Shares of Yum slipped 0.3 per cent to US$69.37 (S$88.60) in extended trading following the news.