Seeking Alpha

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

Yum Brands (YUM) warns on China, expecting same-store sales there to be off 6% in Q4 vs. an earlier forecast of -4% thanks to the effect on KFC sales in late December from the poultry contamination issue. The company continues to expect full-year EPS of $3.24. Shares -3% AH.
From other sites
Comments (9)
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    too many KFC in Beijing-- cannibalising each other.

     

    McDonalds had this problem in the USA a couple of decades ago.
    7 Jan 2013, 05:29 PM Reply Like
  • The Enterprising Value Inve...
    , contributor
    Comments (553) | Send Message
     
    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 2013, 12:07 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    Cn standards are fickle.

     

    Remember Walmart?
    8 Jan 2013, 12:16 AM Reply Like
  • mikety
    , contributor
    Comments (36) | Send Message
     
    All i can say is chicken is cheap and good....62 is good to buy yum.....
    7 Jan 2013, 06:05 PM Reply Like
  • dankourny
    , contributor
    Comments (27) | Send Message
     
    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 2013, 06:23 PM Reply Like
  • chopchop0
    , contributor
    Comments (3933) | Send Message
     
    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 2013, 10:21 PM Reply Like
  • jroliver77
    , contributor
    Comments (78) | Send Message
     
    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 2013, 12:53 AM Reply Like
  • Sejd213
    , contributor
    Comments (197) | Send Message
     
    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 2013, 05:09 AM Reply Like
  • Matt Jonza
    , contributor
    Comments (86) | Send Message
     
    i have no idea how credible this is... but wow

     

    http://bit.ly/UFiyWP
    8 Jan 2013, 06:59 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs