Slowing sales in Yum! Brand’s largest growth region, China, is hovering as a major cause for concern at the world’s largest restaurant operator. Same-store sales inched up a meager 1% during Q4 in China. The increasing dependence on the China market coupled with any potential slowdown in growth there could put a serious damper on the restaurant operator’s bottom line. With the U.S. economy facing rising unemployment, declining consumer spending, and a higher savings rate, non-low cost restaurant chains will likely continue to weigh on the industry. Yum! Brand’s KFC, Taco Bell, and Pizza Hut locations will be fighting McDonald’s, Wendy’s, and other fast food locations for American’s last dollar.
2010 © Better Trades | Contact Us