One source of strength for Yum! has been Taco Bell, which has done a good job of standing up to rivals in the Mexican food space. Some even see the unit as positioning itself to compete directly against Chipotle Mexican Grill, Inc. (NYSE:CMG), although Chipotle’s price points and targeted customer focus are quite a bit different from Taco Bell’s. By reconnecting with former parent PepsiCo, Inc. (NYSE:PEP) through its Doritos Locos Tacos offerings, Yum! has tapped into the popular Doritos brand, helping both companies.
In Yum!’s earnings report, pay close attention to the latest in the company’s efforts to do damage control in China. With so much riding on its Chinese business, Yum! Brands, Inc. (NYSE:YUM) needs to find ways to successfully bring customers back into KFC in order to stem longer-term damage there.
The article Can Yum! Brands Keep Growing Despite China’s Woes? 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, McDonald’s, and PepsiCo.
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