US company Yum Brands which own restaurants such as KFC and Pizza Hut has lowered its full year profits for the second time due to slow sales in its Chinese business.
The company had predicted a growth of at least 20% earlier in the year, however, it revised this to 10% in October and has now said the growth would be in the “mid-single-digit” percentage.
The slow sales came amidst low consumer confidence in the brand, following the revelation that it had been linked with the supplier Shanghai Husi Food, which was accused of selling old meat.
"China division sales were significantly impacted by adverse publicity in July regarding improper food handling practices by a former supplier," the firm said in a statement on Tuesday. "Sales continue to recover, but at a slower pace than expected."
Aside from this year’s troubles, the company is expecting to see a turnaround of at least 15% operating profit growth in China next year.