Yum Brands boasts banner quarter as McDonald's seeks to grow franchising

Yum Brands Inc saw a strong recovery in China in the first quarter, while McDonald's Corp is speeding up its franchising operations in the country to catch up with Yum's market share.

Yum Brands' China sales increased 17 percent in the first quarter compared with the same period of a year ago, with 7 percent unit growth and 9 percent same-store growth. Its restaurant margin increased 6.8 percentage points to 23.4 percent. Operating profit rose 80 percent.

The momentum was encouraged by Yum's recent menu revamp, featuring the launch of 15 new products and a strong performance of its Pizza Hut subsidiary, according to a financial report released on April 22.