How Badly Will China’s Coronavirus Crisis Hurt Yum China?
Yum Brands (NYSE: YUM), the parent company of KFC, Taco Bell, and Pizza Hut, spun off its Chinese operations as Yum China (NYSE: YUMC) in late 2016. Prior to that split, Yum China's growth had decelerated significantly due to avian flu outbreaks and a scandal involving expired meat.
Some analysts praised the spin-off, while others declared that Yum was prematurely abandoning its Chinese business. But since the split, shares of Yum China surged 75% as Yum Brands' stock advanced just over 60%.
Yum China's revenue rose on strong same-store sales at KFC and Pizza Hut, and its margins gradually expanded. However, that enthusiasm recently faded when the company provided a grim update on the coronavirus outbreak during its fourth-quarter conference call.
Source Fool.com
