Option investors taking out protection against share price decline with Yum! Brands, amid worries ahead of company's quarterly report in early February, analysts say
January 26, 2012
– Analysts say that option investors are taking out protection against a share price decline with Yum! Brands Inc., amid worries ahead of the company’s quarterly report in early February, Reuters reported Jan. 25.
Analysts say that investors are worried about Yum! due to the prospects of slowing growth in China as well as unfavorable exchange rates.
Michael Yoshikami, founder and CEO of YCMNET Advisors, whose fund owns McDonald's and tracks Yum!, said because the Chinese economy has slowed to a growth of 8.5%, Yum! can’t necessarily count on robust Chinese growth to aid in its bottom line.
Yum! has about 4,200 restaurants, in China, with most of those being KFC units. The company also owns Pizza Hut and Taco Bell, and has more restaurants than McDonald's and Starbucks.
The primary source of this article is Reuters, London, England, on Jan. 25, 2011.