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Yum! Recoups $14M

LOUISVILLE, KY-The restaurant operator recovers $14 million from the supplier who caused the seasoning snafu for KFC in China.

By Jennifer D. Duell | Updated on October 06, 2005

LOUISVILLE, KY-Sales for Yum! Brands Inc.’s Chinadivision showed “slow, steady improvement” during thethird quarter 2005 after overcoming previous problemswith ingredients used at KFC, according to chairmanand CEO David C. Novak.

Additionally, Yum! recouped $14 million from theingredient supplier and expects to recognize anadditional meaningful financial recovery from the samesupplier during the fourth quarter of 2005. Novakdeclined to specify the exact amount during thecompany’s earnings conference call Wednesday.

During September 2005, the company’s China division system salesincreased 16%, while revenues increased 20% during the third quarter to $360 million compared to $301 million for the same period lastyear.

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