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Yum Brands lowers profit forecast on slow recovery in China

Doritos Locos tacos and a fountain drink from Taco Bell
Patrick T. Fallon | Bloomberg | Getty Images
Doritos Locos tacos and a fountain drink from Taco Bell

Yum Brands lowered its profit forecast for 2014, hurt by slower-than-expected sales recovery in China, following a food safety scare in July.

Shares of the company, which operates Pizza Hut and KFC restaurants chains, fell 3.6 percent in extended trading.

The company said it expects "mid-single-digit" percentage growth in full-year profit, down from the 6-10 percent growth it expected earlier.

A television report in early July showed improper meat handling by a supplier, Shanghai Husi Food, scared away customers in China, Yum's biggest market by sales.