NEW YORK (TheStreet) -- Shares of Yum! Brands, Inc. (YUM) are lower by -5.62% to $68.90 today, one day after the company reported the news coverage of its meat supplier, Shanghai Husi Food Co. has caused a "significant, negative impact" of its sales in KFC and Pizza Hut locations in China, and could cut into its global profit, Reuters reported.
The company said that "if the significant sales impact is sustained, it will have a material effect on full year earnings per share."
China is the largest market for Yum! Brands, helping the company to a 19% second quarter rise in earnings per share compared to the same quarter a year ago.
Separately, TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YUM BRANDS INC (YUM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."