Yum! Brands profits fell 68 percent in the third quarter of fiscal year 2013, as the company's China unit continues to struggle to recover from a controversy over its chicken supply and avian influenza scare. The parent company of KFC on October 8 reported its results for the quarter ending September 7.

China normally accounts for more than 40 percent of the Yum! Brands' operating profit, but sales at restaurants there took a sharp decline in late 2012 after a television report said some of the company's suppliers were giving chickens unapproved levels of antibiotics. A few months later, the chain's recovery efforts were set back by an avian infleunza scare.

"Even with our recent challenges, KFC is unquestionably the category leader in China and we remain confident sales will fully recover from the adverse publicity surrounding the December poultry supply incident," said Yum! Brands CEO David Novak.


Net income for the quarter fell to $152 million, compared to a net income income of $471 million, for the third quarter of 2012.

Yum! Brands also operates Pizza Hut and Taco Bell restaurants.