The owner of fast food chains Pizza Hut and KFC has seen a 68% dip in quarterly sales, due to an 11% fall in sales at its Chinese arm.
The US based group added that its KFC stores in China were unlikely to turn a profit in the fourth quarter following negative publicity surrounding a poultry supply scare and a subsequent breakout of bird flu in the region.
However, the company added that it was still planning to open at least 700 new units in China this year.