Yum Cuts Forecast as China Food Scare Weighs on Sales

Yum Brands experienced a drop in after-hours trading due to disappointing full-year forecasts, largely impacted by tainted food scandals in China. Sales in China dropped 14%, more than the expected 13%. Despite this, Yum plans to open 700 new restaurants in China and anticipates profit growth in 2015. The third quarter earnings per share exceeded expectations, but revenue fell short. Initially, Yum's shares dropped, but later rebounded by 1.9% as they projected a potential sales rebound in China.

What was the primary reason for the decline in Yum Brands' sales in China?

• Economic downturn

• New government regulations

• Tainted food scandals

• Increased competition

How many new restaurants does Yum Brands plan to open in China this year?

• 800

• 600

• 500

• 700

What was the adjusted earnings per share for Yum Brands in the third quarter?

• $0.90

• $0.85

• $0.87

• $0.89

What was the revenue figure for Yum Brands in the third quarter, and how did it compare to analysts' expectations?

• $3.39 billion, above expectations

• $3.37 billion, met expectations

• $3.35 billion, below expectations

• $3.33 billion, below expectations

What was the percentage increase in Yum Brands' stock price during after-hours trading?

• 2.1%

• 1.9%

• 1.7%

• 1.5%