Shares of KFC and Pizza Hut parent Yum! Brands (YUM) - Get Free Report were falling Thursday after the company said that its current quarter, the fisca first quarter, would be “significantly impacted” by the coronavirus in China.
The company added that the fallout could continue beyond the reporting period ending in March.
Yum! Brands temporarily has closed stores in China and already was facing sales declines in Hong Kong and Taiwan, according to a securities filing. The company said that closures and shortened store hours also have hurt the company’s food and materials suppliers.
It wasn’t all bad news for Yum!, however, as the company’s KFC division announced Thursday that it would expand sales of its Kentucky Fried Chicken & Donuts sandwich nationwide. The sandwich features the company’s fried chicken sandwiched between a pair of glazed donuts.
Yum! shares were down 1.35% to $103.77 in trading Thursday.
YUM! is just the latest company to warn investors about the coronavirus’ impact on its quarterly results.
Consumer goods maker Procter & Gamble (PG) - Get Free Report warned that the deadly coronavirus outbreak will have a material impact on the company's results in China for the January-March quarter and for the household and personal products maker overall.
"China is our second largest market - sales and profit," Jon Moeller, P&G's chief financial officer and chief operating officer, said in a statement that was also included in an 8-K filing. "Store traffic is down considerably, with many stores closed or operating with reduced hours."