Will Time Heal What Ails Yum! Brands, Inc. (YUM)’s Stock?

Chief Executive David Novak said on a conference call with analysts that the company will need time to restore its reputation with Chinese consumers.  When a company endures a hit to its brand image, there’s usually not much that can be done other than needing time to remedy the situation.  Yum is refining and strengthening its food safety standards and plans to begin an aggressive marketing campaign after the Chinese New Year to restore KFC’s brand image.

Overcoming damage to a company’s brand image is never easy, particularly when the company in question sells food.  Consumers can be quick to turn away from a company whose food quality is in question, but that perception should fade with time.

Yum has a great reputation for both food quality and popularity, and I agree with the CEO—Yum’s problems in China will be overcome, if investors are willing to exercise some patience.  I believe that all of these stocks—McDonald’s, Wendy’s, and also Yum—are high-quality stocks worthy of consideration by all investors interested in the fast-food industry.

The article Will Time Heal What Ails This Fast Food Stock? originally appeared on Fool.com and is written by Robert Ciura.

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