The impact of the "instant chicken" storm is surfacing with KFC's performance

The impact of the "Crash chicken" storm is emerging. China's business sector is expected to drop 6% per cent of its same-store sales in the fourth quarter of last year, with only a 4% per cent drop, which was "significant", the news agency said yesterday. Industry insiders estimate, to observe the impact of the storm or need to look at the first quarter of data. Yum: Poultry supply in China is being investigated Yum is the case in a U.S. Securities and Exchange Commission document 7th. Yesterday, the reporter saw this document. Yum said the company's poultry supply in China was being investigated by the government, resulting in negative public opinion and a corresponding notable impact on KFC's Chinese sales in the last two weeks of last December, with Yum predicting a 6% per cent drop in same-store sales in the fourth quarter of last year, compared with a 4% per cent decline. The document continues to say Yum is expected to earn about 3.24 dollars per share in 2012. The company said it would not provide any new progress or comment on the report until it officially disclosed its results this February. The journalist noted that Yum's claim was "revised" to the US Securities and Exchange Commission last December 21. In the previous document, Yum had said that time had only a modest effect on sales and said it would not affect its poultry supply chain in China. By the above news, Yum's share price fell 3.5% to 65.50 dollars a day. Industry: or more need to see the first quarter of data "Yum said the decline is actually very ' slight '. Yesterday, a chain of food and beverage companies, a person unwilling to be named after reading the above documents told the reporter, because the industry has estimated the storm will be in the first two weeks to cause the store business fell 20%~50%. It is reported that the same store sales are a key indicator of the chain of fast food industry, said the index is generally measured those who have opened more than 1 years of sales changes in the stores. He believes Yum may have implemented a larger sales promotion before the storm, and he expects the financial situation in the first quarter of 2013 to be more reflective of the impact of the turmoil on Chinese market sales. The reporter learned that the Chinese market is at stake in the U.S. restaurant giant performance. Yum opened 800 new stores in China last year and will open 700 new homes in 2013. By the third quarter of last year, China's sales had contributed as much as $2 billion to Yum, accounting for 56% of its total turnover. Last December, a series of reports by CCTV about the problem of chicken and its suspected flow to "foreign fast food", KFC, which owns more than 4,000 restaurants in China, was suddenly embroiled in the storm. Yum later said it had stopped buying chicken raw material from the former supplier, six and group, last August. A recent report by KFC said that the government's special Investigation team has launched an investigation into Yum, and that the Yum is committed to cooperating fully.