KFC leaders hint some restaurants could close

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Associated Press

Posted on July 14, 2010 at 3:01 PM

LOUISVILLE, Ky. (AP) — Top executives with Yum Brands Inc. are hinting that some KFC restaurants in the U.S. could close if that's what it takes to make the chicken chain more profitable overall.

Yum Chairman and CEO David C. Novak told industry analysts Wednesday that the company will do whatever it takes to make the chain a fast-food leader.

KFC's second-quarter revenue at KFCs in the U.S. that have been open at least a year fell 7 percent.

It's been a tale of two continents: In China, the chain is highly profitable and has become a dominant fast-food brand. Yum's China operations posted a 33 percent rise in operating profit in the second quarter, driven mostly by KFC sales.

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