Yum! Brands (YUM)

The US division makes up 50% of the company's profits, but recent struggles has made it Yum's worst performing region.

The reactions to "western" protests during the Olympic torch run of 2008 demonstrated how quickly consumer preferences can turn against foreign entities in China. For example, France's Carrefour was subject to boycotts across the country ^[1]. Since YUM-brand restaurants are a well-recognized symbol of US business, any sharply negative perceptions (warranted or not) the Chinese population may have against the US could result in sharply lower sales. There is no question that nationalism is on the rise in China, and how it continues to grow or change is a big issue for all non-Chinese companies doing business in the country.

Domestic sales growth at the 500 largest U.S. restaurant chains fell to 3.4 percent in 2008, a decrease from 5 percent the previous year, Technomic Inc, a foodservice consultant, said on Monday.

Intense competion in the QSR industry inhibits pricding flexibility and makes Yum more vulnerable to commodity price increases.

Intense competion in the QSR industry inhibits pricding flexibility and makes Yum more vulnerable to commodity price increases.

Health concerns from the E.coli outbreak and rat infestation at Taco Bell has greatly reduced Taco Bell's sales and inhibited its growth.