Yum News

From Barrons
Yum Brands (YUM), too, recently saw second-quarter revenue rise 12% and net income improve 4%, but alas, commodity costs pushed expenses up 14%. While the operator of KFC and Taco Bell beat estimates (thanks to a lower tax bill), its weakening margins worried investors enough to knock shares down to 34, off 16% since May.
Considering the unprecedented pressure on consumers, its same-store sales look commendable, and 14% growth in China and plans to open 450 restaurants there helps Yum capitalize on the overseas consumer boom and the Third World's sad but growing hankering for American fast food. In 10 years, Yum reckons 70% of its growth will come from overseas, which makes this pullback a buying opportunity -- especially if the rabid rise in commodity costs begin to ease.