The Big Challenge in China for Yum! and McDonald's

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The following video is from Tuesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Austin Smith and Andy Cross, discuss the top business and investing stories.

In this segment, Yum! Brands (NYS: YUM) is down about 5% after announcing that same-store sales in China fell further than expected due to some of the company's chicken suppliers in China being under investigation. The guys talk about how this affects McDonald's (NYS: MCD) by extension, just how big of a problem it is, and whether or not investors should see this as a potentially lasting headwind.


The relevant video segment can be found from 0:31 to 4:14.

The article The Big Challenge in China for Yum! and McDonald's originally appeared on Fool.com.

Austin Smith owns shares of McDonald's. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends McDonald's. The Motley Fool owns shares of McDonald's. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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