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MarketFoolery

MarketFoolery: 01.08.2013

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 8 January 2013

⏱️ 18 minutes

🧾️ Download transcript

Summary

YUM warns about slumping KFC sales in China. Samsung reports huge smartphone numbers for the quarter. And Target continues its price war with online competitors.

Transcript

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0:00.0

It's Tuesday January 8th. Welcome to Market Foolery. I'm Chris Hill joining me in studio today from

0:06.4

Fool.com Austin Smith and from Motley Fool Hidden Gems Chief Investment Officer

0:10.8

of the Motley Fool Andy Cross. Good to see you guys.

0:12.8

Thanks for having us.

0:14.1

We're going to talk about retail.

0:15.6

We're going to dig into just, frankly,

0:17.7

a monster quarter from Samsung Electronics,

0:20.4

but we are going to start in the food world.

0:23.0

Shares of Yum Brands down about 5% this morning.

0:27.0

The parent company of KFC said it expects same store sales in China

0:31.0

to fall more than originally expected due to issues with two

0:34.7

of its chicken suppliers. Andy, we saw this news right before Christmas.

0:39.9

Yumbrants had confirmed that food safety authorities in Shanghai were investigating

0:46.3

their KFC operations.

0:48.8

There's no way this is anything but bad news.

0:51.5

Well and it's on top of already some bad news coming out of China for Young Brands, which is softening

0:57.0

sales.

0:58.0

So they come out in November saying that their same store sales will be down about 4%.

1:02.6

Then this news hits.

1:04.0

People don't, it's bad publicity, people do not go into your KFC in China

1:09.6

where they have thousands of stores.

1:12.0

China is a very big part of Young Brands business,

...

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