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Yum! Brands Shares Down Despite Meeting Forecasts

Brian Sozzi
7/16/14 5:12 PM EDT
Yum! Brands shares moved lower after the company reported second quarter results after the closing bell on Wednesday despite reiterating guidance for the full year. Of particular concern were 2% sales declines in the U.S. for both Pizza Hut and KFC. Taco Bell U.S. sales rose a modest 2%. Despite the mixed picture on the sales front, the executive team at Yum! Brands has been on a new product innovation roll. On July 25, 2014, at 40 Taco Bell stores in Dayton, Ohio, the company will begin testing its Cantina Power protein menu. The goal here is to get more healthy protein into the mouths of consumers. The test follows the company’s full-fledged entry a few months ago into the breakfast category that McDonald’s has long dominated. Even though Yum! Brands operates some 15,400 U.S. locations via its KFC, Taco Bell, and Pizza Hut concepts, and has been innovating, there are three major developing industry trends that should concern executives at the company in addition to the latest earnings results. TheStreet's Retail Contributor Brian Sozzi breaks them all down.
Stock quotes in this video: YUM, MCD, CMG, GIS

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