At first glance, technical indicators appear to contradict underlying fundamentals for franchised restaurant brand Yum China (YUMC). Focused on the Chinese consumer market, the company’s powerhouse labels include KFC, Pizza Hut and Taco Bell. Ordinarily, an investment in YUMC stock would be considered a reliable and predictable one; after all, who doesn’t like fast food?
Ironically, though, the shocking election of President-elect Donald J. Trump on the surface poses significant challenges for Chinese equities. As you know, “The Donald” is a huge (or “yuge”) fan of fast food. However, he’s not exactly the biggest supporter of China. With Trump returning to the White House, fears of a trade war initially clouded the Asian juggernaut’s financial markets.
