Photo: By mikebaird on Flickr
Yum! Brands, which owns KFC, Taco Bell, and Pizza Hut, has seen its stock tumble this morning amid a poor McDonald’s May sales report.McDonald’s reported declining sales in both Japan and China, which has worried investors in Yum! Brands due to the company’s attempt to build overseas. Yum has over 4,600 fast food restaurants in China, so McDonald’s slow down in Asia is certainly troubling.
“As consumer sentiment has remained under pressure, the demand environment has further weakened” in China and Japan, said Sara Senatore, a New York-based analyst at Sanford C. Bernstein, said today in an interview.
Yum! Brands’ drop has made it the biggest loser in today’s market, as its shares have lost 5.5 per cent of its value since today’s open.