Global fast food business Yum Brands Inc, which owns KFC, Pizza Hut and Taco Bill, has reported better than expected financial results for the first quarter of 2013.

The food giant revealed it earned $US337 million for the quarter, a huge drop from the previous year’s $US548 million, but this was a better figure than analysts had predicted following the company’s difficulties in China.

Concern over reports of some KFC chicken suppliers using unapproved levels of antibiotics saw a 20 percent decline in sales at outlets in China that had been trading for at least 12 months, reports AAP/Inside Retailing.

In a statement, chief executive David Novak said “as anticipated, intense media attention surrounding poultry supply in China significantly impacted KFC sales and profit.”

A campaign to restore Chinese consumer confidence in the KFC product using TV advertising and in-store signs to promote the quality of its chicken had been gaining traction, but a new strain of bird flu is the latest challenge for the business.

In China, sales so far reported in April have dropped about 30 percent.