The One Question That Matters For Yum (KFC, Pizza Hut) In China

The One Question That Matters For Yum (KFC, Pizza Hut) In China by Jeffrey Towson, LinkedIn

Yum! Brands (KFC, Pizza Hut, Taco Bell?has been getting a lot of criticism about China this week.

• They missed their 3Q2015 earnings estimates. Multiple analysts dropped their price targets and their market cap sunk $7B.
• This lower-than-expected performance exacerbated lingering frustration with their 2014 food scandal (and subsequent sales slump).
• There is criticism of Pizza Hut China in particular – such as the new steak menu and a decrease in corporate events.
• Activists are arguing for a spin-off the China operations. Or perhaps some other strategic move like divesting Taco Bell or Little Sheep or franchising more China outlets (most are owned).

I think most of these...