Buoyed by strong sales in China, Yum Brands has raised its profit outlook for the full year. This may signal a change of the company's fortune in the important Chinese market, where Yum's profits have been affected by series of food scandals in recent years.               

Like Us on Facebook

Yum Brands has pegged its core operating profit to increase by 14 percent for the full year. This is slightly higher than the 12 percent estimate in its previous forecast, CNN Money reported.

According to CNN Money, Yum Brands' store sales jumped by three percent in the second quarter, while its net operating profit rose by a whopping 44 percent to $339 million on a year-on-year basis. The company has announced that it is on track to spin off its China business later this year. This move is likely to help the company to consolidate its business in China, where it operates around 7,000 restaurants across the country.        

"Our China division is off to a good start in the third quarter for both KFC and Pizza Hut Casual Dining, including a return to positive same-store sales at Pizza Hut Casual Dining in recent weeks," Yum chief executive Greg Creed said in a statement.

Over the years, Yum Brands business in China, which is its largest foreign market, has taken a serious beating after its popular chain restaurant KFC was accused of selling substandard meat to Chinese consumers.

The unearthing of series of food scandals took a serious toll on company's reputation. However, many industry experts feel that Yum Brands has managed to make a turnaround in China due to its diligent efforts.

TagsYum! Brands, china, KFC China, KFC China food scandal