Yum! Brands Inc (YUM)….KFC’s Fall Back Plans

The market is about to be rendered even more competitive by Burger King Worldwide Inc (NYSE:BKW). The company so far has been lagging its peers in China significantly because of its late entry in this market.

However, it is now planning to go aggressive on China. It is true that the company could not deliver on its target of opening 250 to 300 restaurants in 2012 and has a mere 63 outlets. But it is still pursuing its huge target of opening 1000 outlets within the next five to seven years.

Parting thoughts
The chicken scandal is challenging a reputation that Yum has amassed over the years in China. This is definitely not the end and even McDonald’s could go beyond the mad cow scare. But it will take time before Yum can spring back.

Till that happens it will have to rely more on its other markets and that is exactly what the company seems to be doing. The UK and Ireland expansion is a positive for sure although I cannot be too optimistic about the Li’l Buckets launch.