Yum! Brands Leaves a Bad Taste

After Wednesday's close, Yum! Brands (YUM) announced the avian flu scare in China had a significant impact. Same-store sales there declined 13%, made even worse when management broke out the results. Sales at KFC fell 16% and Pizza Hut slumped 4%. Since China represents a more than half of its revenue and about 43% of overall profit, investors ran for the exits after hours. We'll know the full impact of the avian epidemic and how management plans to deal with the crisis when the company reports the full quarter after the close on April 23.

Meanwhile, YUM had a rocky year in China. The company faced a public relations nightmare in December when it was accused of selling chickens laced with chemicals. Sales were just beginning to recover when news of a new outbreak of avian flu hit. During the last outbreak of avian flu, the stock fell by nearly a third as company-wide sales declined 4%. With all the difficulties the company has faced this past year, the Street was quick to cut estimates. Right now, the consensus estimate for YUM is for just 1.3% revenue growth. But just because 2013 is a lost cause, that doesn't mean 2014 can't be a success. The consensus estimate for 2014 assumes that sales rebound 12% to $15.5 billion in revenue....128 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.