Article Review #1

This is an assignment for one of my courses ad I just figured I would post it here. I may or may not continue doing more of these, but we will see if the future!

Article Title (link): Yum says equipped to navigate China’s “ups and downs”

On October 10th, 2012, Reuters online news source posted an article about Yum Brands, Inc. and their condition with the Chinese economic situation. This article talks about how Yum Brands, Inc., back in October, stated that they were still feeling confident that they would be able to deliver consistent sales and operating profits. This is a crucial factor to the operation of Yum Brands because China represents the biggest market for sales and profit for them. This relates to the stocks of the company because along with this confidence statement the company also “raised its full-year profit forecast due to better-than-expected third-quarter earnings that were driven by solid results from China and the United States.” October 10th also happened to be one of the days that I recorded the market value of YUM stocks and it was $70.99, roughly a 6% jump in price from the two days prior price of $66.94. Since this point in time the stock value has continually increased with limited to no decline in value. Even with the poor and slowing economic growth at the time in China, YUM Brands still is predicting a double-digit profit growth in the fourth quarter of their fiscal year. A stat that I found quite interesting and surprising was that the development plan for Yum Brands in China is to open, on average, two new restaurants per day. In the end, all of this seems to point to a continual increase in the stock value for Yum Brands, Inc.


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