China still a bright spot for Yum group

Revamped product lineups and improved store designs in China helped Yum Brands Inc, the parent company of KFC, Taco Bell and Pizza Hut, post a strong recovery in sales and profit, during the second quarter of the year.

The fast-food giant said sales at its outlets in China grew by 21 percent in the second quarter along with a 15 percent growth in same-store sales. Restaurant margins increased by 6.2 percentage points to 16.8 percent and operating profit by 188 percent. The company said it opened 104 new restaurants in China so far this year.

"We are especially pleased with the initial success of our KFC Menu Revamp and excited about our plans for the rest of the year. Overall, we remain on track to open at least 700 new restaurants in China as we further capitalize on the world's largest and fastest growing consuming market," Yum said in a statement.