Wild Times in the Restaurant Business (BKW, YUM, KKD, MCD ...

Sometimes the ?Global Community? experiences some very rough patches because of economies and capitalism being so closely ties together; it?s a small world, and U.S. restaurant brands like Burger King Worldwide Inc (NYSE:BKW), Yum! Brands, Inc. (NYSE:YUM), Krispy Kreme Doughnuts (NYSE:KKD), and McDonald's Corporation (NYSE:MCD) can be viewed by some as ?western outposts? which is true even if all of the employees are local citizens.?

Politics, culture, and religion to the side, a CNN story this morning on YUM, the world?s largest restaurant company with nearly 38,000 KFC, Pizza Hut, and Taco Bell restaurants in more than 120 countries said the fast food giant would be temporarily closing all of its KFC in Pakistan due to anti-American protests.?

Other publicly traded companies like Krispy Kreme Doughnuts, McDonald's, and Burger King also have ?exposures? in Pakistan as well as privately held fast food chains like Subway and Hardee?s.

Reportedly Yum! Brands spokesman Christopher Fuller has said, ??"Our KFC restaurants in Pakistan are closing as a precautionary measure." And, ?? They will continually monitor the situation to decide when to re-open." There is no offical statement on the YUM web site.

I think this is a very, very smart move: Wait until things settle down and reduce the risk.

KFC has more than 60 restaurants in 21 Pakistani cities.?

Angry mobs have attacked a KFC restaurant and a Hardee's and a Krispy Kreme in Tripoli, Lebanon. Hardee's Arabia about 200 restaurants in the Middle East and North Africa.

Until cooler heads prevail I think it wise to reduce any risk of employee injury on a store-by-store basis, company-owned or franchisee and the YUM action could inspire the other chains to temporarily close a unit here and there.

YUM is trading up at the time of this writing in the $67.78 range.?

I haven?t, don?t, and do not intend on holding any of the companies mentioned in this article.

Source: http://www.smallcapnetwork.com/Wild-Times-in-the-Restaurant-Business-BKW-YUM-KKD-MCD/s/via/14/article/view/p/mid/1/id/1041/

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