Yum Faces Commodities Headwinds

According to the Wall Street Journal, “Yum Brands Inc. (YUM) said it is facing commodities inflation like the rest of the fast-food industry, making some price increases on its menus inevitable.”

“The parent company of Taco Bell, KFC and Pizza Hut has big growth plans for 2011, especially in China and other emerging markets, but executives said during a conference call that they expect hurdles, such as commodities inflation and the effect of lapping a particularly successful 2010, to keep them on their toes. Yum is coming off a strong year, with fourth-quarter profit up 27% over the prior year.”