David Stahl
2
All posts from David Stahl
David Stahl in Stocks for Real Men,

Yum Brands And The China Chicken Contraction

A shortage of chicken supplies in China posses a risk for Yum! Brands, Inc.  given its high level of exposure to the country.

In a research report published Wednesday, Jeremy Scott of CLSA pointed out that the USDA Beijing Bureau is expecting a "more significant" contraction in commercial broiler production in China. The analyst added that production is expected to fall 11 percent throughout 2016 and contract even further by 21 percent in 2017.

Meanwhile, China has a ban on grandparent stock from the US and France so there is "little visibility as to when supplies could rebound." The analyst stated that further analysis of China customs data indicate alternative sources of breeder stock "haven't been nearly sufficient to cover the gaps."

link