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NEW YORK (AP) - KFC's parent company Yum Brands Inc. says its profit fell in the latest quarter as it worked to recover from an Avian flu scare and a supplier controversy in China.

But the company says sales at restaurants open at least a year were down 10 percent in its critical China division, showing improvement from the 19 percent drop in May.

Yum, which is based in Louisville, Ky., says it earned $281 million, or 61 cents per share, for its second fiscal quarter. That's compared with $331 million, or 69 cents per share, a year ago.

Excluding one-time items, it earned 56 cents per share, which was above the 54 cents Wall Street expected.

Total revenue fell to $2.9 billion and fell short of the $2.93 billion Wall Street expected.