Yum Brands Removes Trans Fat From Its List of Ingredients

Yum Brands Inc. chains KFC and Taco Bell announced they have stopped using oils containing trans fat in an attempt to smooth over its unhealthy image. A recent E. Coli outbreak at Taco Bell made 71 customers ill and gave Yum plenty of bad press. Doctors say trans fatty acids simultaneously raise bad cholesterol while reducing the good kind. New York City and Philadelphia have passed laws requiring restaurants to phase out trans fat from their menus by 2008; Yum's move means its restaurants in those locations will be in compliance. The decision follows more than two years of consumer testing, which demonstrated removing trans fats did not negatively affect the taste of Yum's foods. Other companies including Burger King Corp., McDonald's Corp., Starbucks and Wendy's have also said they plan to phase trans fats out of their menus though it is unclear what the timetable on that is.

Sources: MarketWatch, AP
Commentary: Yum's U.S. Profit Chomped by E.Coli Outbreak at Taco Bell • Ratting Out Yum Brands • Yum! Brands: Satisfy Your Cravings
Stocks/ETFs to watch: Yum! Brands, Inc. (YUM). Competitors: Burger King Corp. (BKC), McDonald's Corp. (MCD), Starbucks (SBUX), Wendy's (WEN). ETFs: PowerShares Dynamic Food & Beverage (PBJ), PowerShares Dynamic Leisure & Entertainment (PEJ)

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