Why Are Yum! Brands, Inc. (YUM) Earnings Falling?

One area of strength for Yum! has been its advertising, which has demonstrated an ability to get customers to try new menu offerings. A recent survey put Yum! ahead of McDonald’s Corporation (NYSE:MCD) and Chipotle Mexican Grill, Inc. (NYSE:CMG) in terms of using ads to woo early adopters of menu items, even though Chipotle has managed to get fairly impressive results with almost no traditional advertising.

In looking at Yum! earnings in its quarterly report, be sure to look for emerging-market growth outside China. Chinese woes might continue for some time, but recent growth in India and other parts of the world has helped Yum! keep its overall international sales up. That, combined with a renewal of domestic growth, could help Yum! get its earnings moving back in the right direction.

The article Why Are Yum! Earnings Falling? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Chipotle Mexican Grill and McDonald’s.

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