Has Yum! Brands Finally Beaten the Bird Flu?

Is Yum! Brands finally recovering from its avian flu troubles in China, or is this just a bump of better news before Yum! continues to slide?

Feb 8, 2014 at 2:30PM

While same-store sales did fall another 4% in China for Yum! Brands (NYSE:YUM) and its restaurants, operating profit rose in China by 5% as restaurant margins there improved to 14.3%, versus 13.9% a year ago. After the long-term pain Yum! has struggled with in China recently due to concerns about the avian flu and the company's chicken suppliers, many considered this quarterly report to be a success, and management reaffirmed its guidance of at least 20% earnings-per-share growth in 2014. Is this the beginning of the turnaround that Yum! so desperately needs in China, or will this prove to be a fluke amid Yum!'s continuing struggles?

In this video from Thursday's Consumer Countdown, Motley Fool consumer goods analysts Mark Reeth and Mike Finarelli debate the future of Yum!. Mike still believes that the company's headwinds in China will prove to be short term, and sees the markets in China and India to be far from saturated with a lot of growth potential ahead. Mark isn't so sure, and sees much safer players in the food space than Yum!, which still has so many factors related to its menu that are out of its control.

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Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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