The Rising Influence of Rising Affluence

[DewDiligence]

Third Point Partners is bullish on YUM turnaround in China:

http://www.wsj.com/articles/daniel-loebs-third-point-builds-big-stake-in-kfc-pizza-hut-1430491482

Mr. Loeb…said Friday his Third Point LLC has built a “significant” position in KFC, Taco Bell and Pizza Hut parent Yum Brands Inc., expressing optimism about its business in China. In his quarterly letter to his investors, Mr. Loeb disclosed the position and said he sees a “dramatic profit recovery” coming in the next two years…

…“We have spent substantial time assessing Yum!’s recovery potential and examining whether its status as a ‘repeat offender’ has irreparably damaged the brand in China,” Mr. Loeb wrote. “By an overwhelming majority, local consumers believe the food at KFC is safe or at least as safe as other restaurant options.”

That’s all it took for YUM shares to spike 7% today, LOL.