Yum! Brands: China to achieve 40% operating profit growth in FY14 The company says this will be driven by sales and restaurant margin improvement. This will be offset by commodity inflation of 3% and modestly higher labor inflation. Sales in China are "difficult to predict". With current trends, FY14 SSS growth will be in the high-single digits.
McDonald's pressured by rising competition in China, WSJ says In addition to its food supplier issues, McDonald’s (MCD) has a bigger problem in China, namely rising competition from other foreign companies such as Yum! (YUM) and domestic chains that have gained prominence and scale, said The Wall Street Journal. Reference Link