Yum Brands (YUM) warns on China, expecting same-store sales there to be off 6% in Q4 vs. an...

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Sam Liu Comments (3138)
 
too many KFC in Beijing-- cannibalising each other.

McDonalds had this problem in the USA a couple of decades ago.
7 Jan, 05:29 PM Reply Like

Fin858 Comments (450)
 
It's not cannibalization. YUM and MCD were cited in the Chinese press for using two chicken suppliers whose chickens tested above normal for antibiotics. Govt tests later proved current supplies as being acceptable. Both YUM and MCD dropped those two suppliers.

Damage has been done and YUM could see some soft china comps in the next 6 to 12 months but LT ramp in China is still in the early innings. Tomorrow might be an interesting entry point. I think FV is 80/share.
8 Jan, 12:07 AM Reply Like

Sam Liu Comments (3138)
 
Cn standards are fickle.

Remember Walmart?
8 Jan, 12:16 AM Reply Like

mikety Comments (30)
 
All i can say is chicken is cheap and good....62 is good to buy yum.....
7 Jan, 06:05 PM Reply Like

dankourny Comments (10)
 
Nothing to do with cannibalizaiton, everything to do with fears of tainted chicken in China. Bigger concern is what it does to 2013 expectations, particularly Q1 guidance given that the issue really hit consumer awareness during the last 2 weeks of Q4 and it still caused them to lower SSS guidance from -4% to -6%.
7 Jan, 06:23 PM Reply Like

chopchop0 Comments (1721)
 
question is how permanent this will be. Remember, this is a country which had melamine in its pet food, fake milk powder and anti-freeze in its toothpaste.

KFC was probably not a bad alternative
7 Jan, 10:21 PM Reply Like

jroliver77 Comments (70)
 
I think it will take a few qtrs but long run w good mgt it will be in the past. We can also see how other sectors can drive up sales and keep their numbers in line. Ill add to existing positions at 61-63 area.
8 Jan, 12:53 AM Reply Like

Sejd213 Comments (97)
 
Time and time again co`s like YUM overstate the situation so they look good to the street..YUM reports Feb. 4th Something tells me YUM will have better earnings than expected...If it rinses towards 60-62, i will add additional shares to my port..
On a sidenote: If i were YUM i`d look at co`s like WEN or Sonic to buyout and go head to head against the Golden Arches...
8 Jan, 05:09 AM Reply Like

Matt Jonza Comments (76)
 
i have no idea how credible this is... but wow

http://bit.ly/UFiyWP
8 Jan, 06:59 AM Reply Like