Yumm Essay

Analysts had suspected a decline in Yum’s China sales, howeve,r they weren’t expecting the 10% drop in stock reported in the company’s second quarter revenue report for 2015 (Yum! Brands, Inc. (YUM): China Sales Are Far From Yummy, 2015). A little over a year ago YUM Brands sales were falling at a drastic rate in China. The loss of revenue was due to issues with food quality and safety in which investors had expected the company would have recovered more than they have as of yet (Yum! Brands, Inc. (YUM): China Sales Are Far From Yummy, 2015). However, the company still plans to open 700 new locations (Yum! Brands, Inc. (YUM): China Sales Are Far From Yummy, 2015). It is understandable why YUM has continued to invest in China with it being the largest nation in the world and with their middle class erupting with millions of potential customers (Yum! Brands, Inc. (YUM): China Sales Are Far From Yummy, 2015). YUM is currently forecasting at least 10% earnings per share growth for 2015; however few believe that they can achieve this goal or yet solve the bigger issue of how they will keep sales from declining in China (Yum! Brands, Inc. (YUM): China Sales Are Far From Yummy, 2015).

Taco Bell is combining with DoorDash, a company that competes with big name food delivery services such as Munchery, GrubHub, and Sidecar, in an attempt to dominate their fast food competitors as well as door-step delivery chains (Conlon, 2015). Nearly 200 of YUM’s Taco-Bell chains are testing this new venture as of today (Conlon, 2015). This collaboration helps YUM Brands retrieve important feedback to provide quality service as well as to see where they should be expanding their delivery services to in the future (Conlon,