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Tag Archives: KFC
Yum’s new leadership change marks the start of a new period of sustained same-store sales growth for KFC in China, overview by former Reuters journalist Doug Young
Beijing regulators are making an example out of GlaxoSmithKline (GSK) （London: GSK) by accusing the British drug giant of massive bribery related to its aggressive sales tactics, spotlighting one of the major risks that foreign firms face when doing business in China.
While many of the allegations against GSK may well be true, the timing and high-profile nature of the probe against such a well-known and trusted western name look like a warning to all drug companies to stop this kind of behavior as China overhauls its healthcare system. Unfortunately for GSK, the company’s reputation and business in China will be severely damaged by the scandal. Many employees have already been fired since the scandal began, and some could even end up in jail for practices that are quite common not only in China but also in many western countries. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 13. To view a full article or story, click on the link next to the headline.
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Sina (Nasdaq: SINA) Reports Q2 Financial Results (PRNewswire)
ZTE (HKEx: 763) To Sell ZTE Open Firefox OS Phone on eBay US and UK (Businesswire)
Alibaba’s Taobao Bans Externally Linked QR Codes (English article)
500wan.com Chooses Deutsche Bank, Stifel For $150 Mln New York IPO (Chinese article)
Yum’s (NYSE :YUM) July China Restaurant Sales Drop More Than Expected (English article)
As if its China troubles weren’t bad enough following a weak earnings report, global tech giant Apple (Nasdaq: AAPL) is now coming under political fire from central bureaucrats in Beijing for failing to deliver promised donations after an earthquake earlier this year. Frankly speaking, I don’t have a lot of sympathy for Apple or any of the other firms that get this kind of criticism, since I find their quickness to announce donations after any major disaster somewhat insincere and largely a publicity ploy. But the fact that yet another foreign firm is coming under attack from central government sources this month certainly adds to my previous assertions that Beijing has recently embarked on a drive to discredit foreign firms and divert attention from other domestic problems. Read Full Post…
Western fast food chains have seen decidedly mixed results in China, reflecting a wide range of factors in this image-conscious society where perceptions and promotions are often just as important as product quality. It’s not often that I break news in this sector, but now I’m excited to report that US pizza specialist Domino’s is preparing a major push into the China market, aiming to tap the growing trend for products that can be delivered to the home. Read Full Post…
It’s a new day, and that means time for the latest new scandal surrounding a foreign company doing business in China. This time McDonalds (NYSE: MCD) and Yum’s (NYSE: YUM) KFC are in the spotlight for serving water that contains excess levels of bacteria. This scandal is just the latest in a nonstop stream for foreign companies this month, providing plenty of food for domestic media during the summertime that is usually considered a slow period for news. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 23. To view a full article or story, click on the link next to the headline.
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KFC (NYSE: YUM) Ice Cubes Found Dirtier Than Toilet Water (English article)
Glaxo (London: GSK) Says Executives Appear To Have Broken Chinese Law (English article)
TAL Education (NYSE: XRS) Announces Unaudited Fiscal Q1 Results (PRNewswire)
An interesting new Chinese media report is questioning whether US fast food giant Yum (NYSE: YUM) is spoiling the Little Sheep chain of hot pot restaurants it acquired just a year ago. The numbers released by Yum certainly don’t look very so-so, and comments by an unnamed restaurant official don’t paint a very rosy picture either for Little Sheep under Yum’s management. But it’s probably still too early to say whether this acquisition will be a success, and I would still be willing to bet we’ll see Little Sheep start making some new and exciting moves later this year. Read Full Post…
Embattled hoteliers and restaurant operators whose business has been hit by China’s H7N9 bird flu outbreak are finally getting some relief with Shanghai’s formal cancellation of its bird flu emergency after the city went 3 weeks without any new cases. (English article) But companies could continue to feel the fallout from the scare for at least the next few months, with by Yum’s (NYSE: YUM) KFC perhaps the most vulnerable to longer term damage. Read Full Post…
Mutton scandal gives Yum’s Little Sheep indigestion
As if its problems weren’t bad enough in China, global fast food giant Yum (NYSE: YUM) is getting a new round of indigestion in its most profitable market from a new food safety scandal that gets my personal award for “grossest” scandal of the year. China followers will know I’m talking about the latest revelations that some unscrupulous food processors illegally treated meat from dead foxes and minks to look like mutton, and then sold the product to unsuspecting restaurants. Read Full Post…
The latest stomach-churning results from fast food giant Yum (NYSE: YUM) are a good opportunity for an updated look at the impact that bird flu is having on companies that rely on the restaurant and travel industries in China. Somewhat ironically, these latest dismal results from the operator of KFC and Pizza Hut restaurants actually sparked a rally in Yum shares, since many were expecting the figures to be even worse than they were. Read Full Post…
Much is being written about the flurry of H7N9 bird flu cases in and around Shanghai, but few of the stories are focusing on the impact the outbreak is having on businesses. Chicken farmers and sellers are taking an obvious hit, but restaurants with a heavy presence of chicken and pork on their menus and Shanghai-based event organizers and supporting industries like hotels and airlines are also likely to suffer in this current bird flu event. Read Full Post…
