Bird flu, slowdown hit sales at fast-food chains

The bird flu scare and the economic slowdown hit the sales of some Western fast-food chains in China last month.

Yum! Brands Inc's same-store sales in China declined an estimated 13 percent year-on-year in July, with a 16 percent decrease at KFC and only 3 percent growth at Pizza Hut, Yum! Brands said on Monday.

Yum! Brands Inc's same-store sales in China declined an estimated 13 percent year-on-year in July, with a 16 percent decrease at KFC and only 3 percent growth at Pizza Hut, Yum! Brands said on Monday. McDonald's Corp also saw a sales decrease in China.Provided to China Daily

Meanwhile, McDonald's Corp — Yum! Brands' main rival — also saw a sales decrease in China.

The company said on Aug 8 that comparable sales in Asia-Pacific, the Middle East and Africa decreased 1.9 percent in July, "reflecting negative results in Japan, Australia and China".

China's economic growth slowdown may be an important reason behind the declines, some analysts said, although McDonald's attributed the lower sales in those regions partly to the shift in timing of Ramadan.

Muslims across the globe observe Ramadan as a month of fasting.

"Due to the economic slowdown, consumption is weak, while the costs of raw materials, human resources and rents are all on the rise," said Li Weihua, deputy director of the franchise research center of the China University of Political Science and Law.