Tuesday, October 6, 2015

China Consumers Turn Away From Yum Brands

Yum Brands is blaming a strong U.S. dollar for its weak sales in China, but you can’t tell that to Nike or Apple. It looks as if Chinese consumers are becoming more practical in their spending, and you don’t have become very practical to look for an alternative to the food company that brought you KFC, Taco Bell, and Pizza Hut. Investors looking for a bounce back from the meat scandal that killed sales a year ago were disappointed at China same-store traffic up only 2 percent and expected to reverse before the year is over. From BBC News: KFC owner Yum shares down 17% on China forecast.

Of course, some analysts are saying weak demand for deep-fried chicken is a sign of a recession in China. That’s a bit of a stretch, but perhaps a fair question to ask at this point.

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