Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Yum! Brands' Problem Isn't Just KFC in China

Yum! Brands' (NYSE: YUM  )  recent struggles go deeper than just the Chinese portion of its KFC portfolio. In the video below, Fool contributor Demitrios Kalogeropoulos says that Yum!'s latest business results included two other bad surprises for investors.

First, the company took a huge writedown on its Little Sheep investment in China, which cleaved 55 percentage points off its earnings this quarter. Also, KFC sales turned sharply lower in the U.S., flipping from 3% growth last quarter to negative 4% growth this time. That loss swamped the small gain that Yum! saw from its improving Taco Bell business, Demitrios says. Overall, weak profits from the U.S. could make it hard for Yum! to hit the roughly 15% earnings dip that it is targeting for all of 2013, he argues.

International growth is key
Still, there's no doubt that overseas profits will be key to the company's future. The Motley Fool's free report, "3 American Companies Set to Dominate the World," shows you how to profit from a few of the U.S. businesses that, like Yum! Brands, are well positioned to grab market share overseas. Click here to get your free copy before it's gone.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2675702, ~/Articles/ArticleHandler.aspx, 3/4/2015 11:33:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!