One-Off Gain Keeps KFC’s China Operator in the Black

Yum China Holdings Inc., the fast-food giant that operates the ubiquitous KFC and Pizza Hut restaurants in China, would barely have profited in the fourth quarter if not for a one-time noncash gain that came from revaluing its stake in a joint venture.

The firm recorded a 93% year-on-year drop in adjusted net profit in the three months through December to $11 million, as sporadic virus flare-ups continued to hit the fast-food business.