News Summary: Yum expects 1Q profit to drop
News Summary: Yum expects 1st-qtr profit to drop 25 percent over chicken scare in China
PROFIT DECLINE: Yum Brands Inc. expects earnings per share to fall 25 percent in the first quarter, as it continues to reel from a controversy over its KFC chicken suppliers in China. The company, which also owns Pizza Hut and Taco Bell, expects a profit drop in 2013. That would snap an 11-year growth streak.
CHICKEN SCARE: A December report on Chinese television said KFC suppliers had been ignoring regulations and giving chickens unapproved levels of antibiotics. It has agreed to adopt stricter oversight of suppliers.
FORGING AHEAD: Yum says it still plans to expand in China, where it already has about 5,300 locations, and that the country remains key to its long-term success.