KFC plans menu overhaul in China

Yum Brands' chicken chain hopes to overhaul its image amid consumer concerns about food safety.

By InvestorPlace Mar 27, 2014 2:53PM

Credit: © Kim Kyung-Hoon/Reuters

Caption: A KFC restaurant in Beijing, ChinaBy Burke Speaker


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 percent 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 percent 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 percent year-to-date.


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10Comments
Mar 27, 2014 3:47PM
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Can't breath the air over there, but they worry about antibiotics.
Mar 27, 2014 4:01PM
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Sure tasted like Chicken, but it had funny looking eyes...
Mar 27, 2014 4:03PM
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zuksam...You forgot to mention your Grandma's fried chicken...??  too.
Mar 28, 2014 9:46AM
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Tasted like Chicken, but smelled like Fish....arf, arf, arf....


Just can't help myself....TGIF.

Mar 27, 2014 3:20PM
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I know at least a dozen Chinese Restaurants who make better fried chicken than KFC. Chicken is big in China and I imagine there is no shortage of good fried chicken there. KFC is expensive here and it probably is in China too. I prefer Popeye's for chain store chicken but I know a Pizza joint with a Greek owner that makes the very best fried chicken and it's half the price of KFC.
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