Long John Silver’s Parent Post Lower Net Profit
The parent company of Long John Silver’s on Tuesday posted a fourth-quarter net income of USD 204 million (EUR 158.5 million), compared to a net income of USD 231 million (EUR 179.5 million) during the same period last year.
Yum! Brands blamed the drop in part to fourth-quarter same-store sales in China, which were up just 1 percent, compared to 17 percent last year. The Louisville, Ky., company generates 60 percent of its operating profit from China and other foreign countries.
Same-store sales were up 5 percent overall at Yum’s international units and up 2 percent at its U.S. units.
Yum and quick-service chains such as McDonald’s Corp. had been somewhat sheltered from the U.S. recession because of its substantial international presence, but recently the global downturn has caught up to China, as its consumers eat out less frequently.
Long John Silver’s is the United States’ largest quick-service seafood chain. Yum is the world’s largest restaurant company in terms of number of units, with nearly 36,000 in more than 110 countries and territories. In addition to Long John Silver’s, Yum operates KFC, Taco Bell, Pizza Hut and A&W.