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Is Yum! Brands Finally Seeing a Turnaround in China?

By Erin Kennedy and Michael Finarelli – Feb 4, 2014 at 3:00PM

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Yum! Brands' fourth-quarter earnings may indicate the beginnings of a turnaround in China.

Yum! Brands (YUM 0.38%) reported fourth-quarter earnings last night after market close, and on the whole, investors cheered the report. The fast-food giant saw a jump in operating profit thanks to an increase in labor efficiency in China, one of Yum!'s most important markets. Shares are climbing steadily today on the back of this report.

Yum! has been struggling in China due to avian flu fears affecting its KFC restaurant chain. Motley Fool bureau chief Michael Finarelli thinks that although same-store-sales growth in China actually declined 4%, it's a meaningful improvement. Michael believes Yum!'s brands remain intact, and the company has a tremendous footprint to continue growing internationally, making the stock an intriguing pick for investors.

Erin Kennedy 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. 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.

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$129.68 (0.38%) $0.49

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