Chinese consumers remain worried about food safety, and competing chains are gaining ground. KFC’s China sales plummeted after CCTV reported in December that one of its suppliers was selling chicken that had been given unapproved antibiotics and hormones. Then bird flu broke out in March. By mid-year, KFC’s declines were slowing and Chief Executive Officer David Novak expressed confidence that sales would turn positive in the fourth quarter. “The trend is in the right direction,” a spokesman told Bloomberg Businessweek in July. But losses have remained steady.