Yum Brands Inc, the parent company of KFC, warned last Tuesday that it would take longer than expected for its China restaurant sales to rebound. This would result to a delayed recovery in the market that accounts for more than half of the company's overall profit for operation.

The shares of the company fell by 7.5% after investors knew the news. This was after months of Yum executives reassuring investors that the restaurant sales in China would return to growth in the fourth quarter.

The sales of the company in China had been decreasing since last December after a social media report scared people over chemical residues in chicken from its suppliers. It was then followed by the outbreak of bird flu which destroyed many diners' appetite for poultry products.

According to CEO David Novak, "KFC is unquestionably the category leader in China and we remain confident sales will fully recover."