KFC raises prices in China

While McDonald's is the dominant fast food chain the U.S. and elsewhere around the globe, it has struggled in China. In the world's second largest economy, KFC is an undisputed leader, but the company recently increased prices in China as it battles soaring business costs.

KFC raised prices in China late last week on chicken dishes and drinks by an average of 0.5 to 1.0 yuan, according to Forbes. The company is endeavoring to implement a business cost reduction plan as it battles soaring raw materials prices in China. Inflationary pressures have further hurt profits at its operations in the country, which have become an increasingly important source of revenue for Yum, KFC's parent company.

KFC operates 3,200 restaurants in China, and the firm has been forced to increase prices on a number of its popular menu items over the course of this year. In September, KFC raised prices on its burgers, citing the rising cost of beef.

China's inflation rate has hovered above 5 percent this year, driven by the country's speculative real estate market and soaring demand for commodities. The government has worked to rein in inflation by requiring banks to institute higher capital requirements for banks, but it has failed to quell the nation's rapidly rising consumer price index, Reuters reports.