What the Heck Happened to Yum! Brands?

Yum! Brands had a rather disappointing earnings announcement the other day, with profits dropping 68% and same-store sales in China declining 11%. According to consumer goods analyst Michael Finarelli, there's more to it than disappointing numbers, including a non-cash writedown charge and continuing poultry issues in China. Consumer goods analyst Sean O'Reilly thinks it'll take until at least 2014 for Chinese consumers to forget about the company's issues, but until then, it remains one of the premiere fast-food companies in the world.

Of course, Yum! is still bullish on China, especially considering the impressive growth the country's consumer base is experiencing, and both Mike and Sean believe that there's still a big opportunity for investors in Yum!.

Yum! Brands isn't the only company profiting from China
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The article What the Heck Happened to Yum! Brands? originally appeared on Fool.com.

Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. Sean O'Reilly 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.

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