(Reuters) - KFC parent Yum Brands Inc
Eight analysts, on average, had expected July sales to fall 7.7 percent, according to Consensus Metrix.
Yum generates more than half of its overall operating profit in China, where it is the biggest Western restaurant operator with roughly 6,000 mostly KFC restaurants. Late last year its China restaurant sales tumbled after a scare over chemical residues in chicken. That was followed by a bird flu outbreak.
Yum, which also owns the Taco Bell and Pizza Hut chains, expects China restaurant sales growth to resume in the fourth quarter.
Shares of Yum slipped 0.3 percent to $69.37 in extended trading following the news.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Bernard Orr)