Analyst Lowers Yum Brands to ‘Neutral’

According to the Associated Press, “Shares of Yum Brands Inc. tumbled Tuesday as an analyst downgraded KFC’s parent company on its soft U.S. sales.”

“David Palmer of UBS predicts the Louisville, Ky.-based company will probably report a third-quarter same-store sales decline, with continued weakness at Pizza Hut and a slowdown at Taco Bell and KFC – when compared with the second quarter. In July, Yum reported its domestic same-store sales slipped 1 percent in the second quarter, due to an 8-percent decline at Pizza Hut.Same-store sales, or sales at stores open at least a year, are a key measure of restaurant performance, because they measure growth at existing stores rather than from newly opened ones.The analyst is also cautious on the timing of Yum’s China turnaround,” the story said.