These guys are toast! Never heard a team miss by so much have so few answers. Credibility and visibility are both issues. CEO sounds like a CMO and thinks the only approach to fixing issues is a marketing one. Heard zero substance regarding a plan to fix China. Heard nothing about anywhere else...including on the Pizza Hut business that should have turned around by now (1 year into a "brand relaunch"). Terrible leadership team! Novak and Sam Su sure did time their exit well! Ha!
Novak road the development of China, along with Sam Su...and now, with the brands performing poorly in developed countries....and China's growth dramatically slowing...they are in deep poo poo because 2 of their brands (KFC and Pizza Hut) are in bad shape...Pizza Hut same store sales were flat this quarter while Domino's is plus 10% and PJ's 5-7%...YUM claims victory for KFC USA with 2% while Popeyes and Chic Fil A are 3-4X that.....spin these brands off YUM!!! That would increase shareholder value!!!!!!!!!!!
It has to test bottom....and probably set a new one...YUM CEO "retired" at start of year....China CEO "retired" 6 months later....really....this stock will set a new bottom. New YUM CEO speaks like a cocky asZwhole and has no public company leadership experience...and the new China CEO is Mickey Pant...who is he? Old execs left a company on decline in time to claim success...and it was a house of cards! Ha!