NEW YORK (TheStreet) -- Yum Brands (YUM) shares are up 2.8% to $72.50 in trading on Thursday, rebounding from the dip it experienced after the company announced dismal same store sales results in China yesterday and its announcement earlier in the week that it is cutting its 2014 growth forecast.
The operator of Pizza Hut and Taco Bell restaurants said that it saw a 15% decline in Chinese same store sales during the month of November. Yum Brands is the largest Western restaurant operator in the country with over 6,400 stores there.
On Tuesday, the company lowered its full year forecast for the second time this year as the tainted food supplier scandal from earlier this year has continued to hurt its bottom line. Yum Brands now expects to see full-year profit growth in the mid-single digits percentage range, down from the 6%-10% growth it revised from its original 20% growth expectations.
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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 compelling growth in net income, impressive record of earnings per share growth, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."