Yum! Brands Chinese Chicken Nightmare Has Ended

Yum! Brands, the owner of KFC and Taco Bell, has reported that same-store sales plunged 20 percent in China in Q1.

This is according to a new 8-K the company filed with the SEC.

However, Yum! also said that February same-store sales were up 2 percent. This suggests the worst may be over.

Yum's KFC chain has been struggling amid chicken supply worries in China.

Yum! shares are currently up 8 percent in after-hours trading.

Here's the full release:

Louisville, KY (March 11, 2013) - Yum! Brands Inc. (NYSE: YUM) first quarter same-store sales declined an estimated 20% for the China Division. This included estimated declines of 24% at KFC and 2% at Pizza Hut Casual Dining. Consistent with prior years, the first quarter of the China Division is two months and includes January and February results.

February same-store sales growth was approximately 2% for the China Division, including flat same-store sales at KFC and 13% growth at Pizza Hut Casual Dining. We estimate the timing of Chinese New Year had a positive mid-teen impact on February same-store sales growth for both KFC and Pizza Hut Casual Dining, offsetting a similar negative mid-teen impact in January. For the full quarter, the Chinese New Year impact to same-store sales growth was neutral.

We will release March same-store sales for our China Division on April 10, 2013 after market hours. We will release first-quarter earnings on April 23, 2013 after market hours.