On Thursday, Yum Brands added activist investor Keith Meister to its board of directors and lowered its outlook for earnings and China sales.
While announcing it is nearing the end of a strategic review, the KFC and Pizza Hut operator said it would see flat to low-single digit profit growth this year. It previously expected low-single digit earnings growth.
The forecast reflects foreign exchange rates, which are expected to take 1 to 2 percent from full-year earnings. Yum also tempered expectations for its key China market, projecting negative same-store sales there for the year.
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Earlier this month, Yum blamed its third-quarter earnings miss largely on sluggishness in China. The company said same-store sales in China, where it generates more than half of its operating profit, rose just 2 percent. They were expected to be especially strong, at 9.6 percent, according to a Consensus Metrix estimate.
"[T]he pace of recovery in our China Division is below our expectations," CEO Greg Creed said, in the earnings release. "Given our lower full-year expectations in China, combined with additional foreign exchange impact, we now expect 2015 EPS growth to be well below our target of at least 10%."