The following press releases and media reports about Chinese companies were carried on July 15. To view a full article or story, click on the link next to the headline.
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Yum’s (NYSE: YUM) Sales Miss Projections After Slump Persists in China (English article)
Bottom line: Alibaba-affiliated Ant Financial is experiencing breakneck growth through its roll-out of a wide array of new products and services, and could be valued at up to $150 billion by the time it makes its IPO as soon as next year.
Ant Financial in Alipay offline campaign
A new report is spotlighting the rapid rise of Ant Financial, the financial services affiliate of e-commerce giant Alibaba (NYSE: BABA) that looks set to challenge not only domestic rival UnionPay but also upcoming drives into China by global giants Visa (NYSE: V) and MasterCard (NYSE: MA). Much of Ant’s incredibly rapid rise is tied to its core Alipay asset, which began life as an electronic payments service but is rapidly moving into other areas like credit card-style offline payments and savings account services.
The latest reports also contain a new figure on Ant’s valuation following its first major capital raising. That figure of $45 billion is substantially larger than an earlier figure of $30 billion that was contained in initial reports on the funding just a week ago. (previous post) But those earlier reports also pointed out the low valuation was based on shares that were probably sold at a discount to a big domestic institutional investor, perhaps for strategic reasons, and that the real value could be as high as $50 billion. Read Full Post…
Bottom line: KFC’s and McDonald’s latest moves to add high-tech elements to their China stores are a savvy way to update their images, and could help to attract a younger trendy crowd that has abandoned both chains in recent years.
KFC links up with Alipay
Leading global fast food chains McDonald’s (NYSE: MCD) and KFC (NYSE: YUM) are both in the headlines as we head into the heart of summer, each trying new high-tech approaches to reignite their faltering China stories. Announcement of these latest initiatives seems especially appropriate right now, as we’re approaching the first anniversary of a food safety scandal that dealt a major blow to both chains in China.
KFC’s deal will see it pair up with Alibaba (NYSE: BABA) to offer its affiliated Alipay electronic payments service at hundreds of its China stores. The McDonald’s news is similarly high-tech, and will see the chain extend its new state-of-the-art hamburger customization program to the China market. Read Full Post…
Bottom line: Foreign-owned meat companies could lose their premium image over Chinese rivals after a Shanghai-based scandal over the summer, as foreign firms remain vulnerable to high scrutiny.
Tyson China expansion on hold
Just yesterday I wrote how foreign food makers generally enjoy a better reputation in China over their domestic rivals, but one glaring exception to that rule is the processed meat industry. The meat processors also used to enjoy a strong reputation, until a major food safety scandal erupted over the summer involving Husi Food, a unit of US meat processor OSI Group. Now the latest headlines are quoting OSI saying 6 of its China workers have been arrested in connection with the scandal. It has also confirmed layoffs of most workers at its Shanghai plant that has been idled since the scandal first broke. Read Full Post…
Nearly 3 months after announcing its first major overhaul since entering China in the 1980s, fast-food giant KFC (NYSE: YUM) is saying it plans to move upscale as part of a drive to reignite its sputtering growth in the market. This kind of repositioning looks quite shrewd, and plays to a more upscale image that overseas brands naturally receive due to their foreign status. KFC actually enjoyed such upscale status when it first came to China in 1987, when its clean restaurants, friendly service and and quality food were considered superior to the fare at many local eateries at that time. But as China’s economy has boomed and income levels have risen, KFC’s image has moved considerably downscale, and the chain is now considered quite average. Read Full Post…
Fast food leaders McDonalds (NYSE: MCD) and KFC (NYSE: YUM) have unveiled major China overhauls in the last few weeks, as each tries to reignite stalling growth in one of their biggest and most profitable markets. Such retrenchments are long overdue, more than 2 decades after each company first came to China and achieved huge success by opening stores that offered not only good food at affordable prices but also friendly service and a comfortable eating environment. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 23. To view a full article or story, click on the link next to the headline.
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Private equity investor Fosun International (HKEx: 656) is closing in on a landmark but controversial deal to buy US publishing giant Forbes Media, which would become the first purchase of a major western media firm by a Chinese company. The deal is almost certain to draw attention in the US where Forbes is based, with some calling for the government to stop the sale over concerns that Fosun could interfere with Forbes’ editorial independence and block publication of sensitive content. Read Full Post…
Many things have changed quite a lot in China since my first visit to the country in 1987, but one of the most subtle and yet also quite profound is the vast transformation of Chinese eating habits. The China I first encountered in the 1980s was one where local flavors dominated the eating scene everywhere, from major cities like Beijing down to the smallest villages in Guizhou province.
Today that picture has changed dramatically, with cities like Shanghai boasting a wide range of domestic and foreign cuisines that can rival any other top city in Asia. Even mid-sized cities often host a wide range of non-native regional Chinese cuisines, as well as the occasional restaurant cooking up famous foreign cuisines like Italian or Japanese. 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…
The following press releases and media reports about Chinese companies were carried on April 11. To view a full article or story, click on the link next to the headline.
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Yum Brands (NYSE: YUM) Still Struggling In China Amid Bird Flu Fears (English article)
