Yum has over 33,000 locations around the world, someone sees a few rats in one restaurant and the market erases 260M in market cap. I'd say that's an over reaction and I added some calls on the dip today.
33000 stores with a lot less customers today for sure, their runnings these commercials all weekend gotta hurt
Yeah, in China they can use the rats as meat and cut costs. I'm going to walk over to 3rd Ave. right now and grab some Yum Yum burritos.
I hate to admit it and I know Cramer is going to yell it Monday..BUY BUY BUY.. But not yet. We have to presume the hot topic in the media for the next week or so will be; How safe is the food we eat? You know how they love this stuff..So wait till the end of the week at least..You'll get a better entry..
I figure if the market goes down next week this will follow just because of the RATS, i bought the 55 puts only 10 contracts I think its next target if it dumps, they might hold it up for the month and see if it caused damage but I can't believe anybody who saw the tapes will be at kfc or taco bell this weekend and with the e-coli last month????? jay leno had a buRATto on last night, it was a green wrapper with a rat inside and the tail was moving, pretty funny
well lets look at the basic's. It is America and we are statisticaly overweight..We also LOVE our fast food. A taco bell restaurant by my house had an e-coli case. It was closed for three days. When it opened I didn't see the usual line of cars at the drive thru..The following Sat night the drive through was backed up to the street. Not in site, not in mind.I bet you if they re-open the taco bell with the rats, they will have customers out the door in no time..Business as usual.Yum will take a dive as long term investors and funds bail this week. I'm going to look for a short position this week and then turn away from this security.
wow that's nasty. i used to live right around the corner and eat there occasionally too. always jumping over rats to get around the neighborhood at night there's obviously an adequate supply of exposed and discarded food. ...a city like rome with a cat infestation... do they have rats?
I think its going to depend on how the market goes this week, the obvious thing to do would be to short this thing or buyputs but we all know the obvious doesn't usually work, if the market goes down this week yum should follow, if not we might have to see how long they keep it in the news, I know wendys dumped huge on the finger news and came right back when it was false, but wendys was a lower volume stock