Stock market future is higher at the open, but I rather see it open lower because this kind of rebound tend not to hold. Contradicting news from Yum and Wendy’s. Yum brand reported great quarter; beating the estimate by one cent and raised 2005 guidance from $2.62 to $2.64. Yum brand includes restaurants like Kentucky Fried Chicken, KFC, Pizza Hut, Long John Silver’s and Taco Bell. Wendy’s on the other hand said same-store sales at its namesake company-owned restaurants fell about 5% in the U.S. in the third quarter. So what’s the story here? Does the higher fuel prices help Yum because consumer have less to spend on fancier restaurants? If that’s the case why Wendy’s are not doing well? Maybe Yum brand is executing better.

This entry was posted on Wednesday, October 5th, 2005 at 9:47 am and is filed under Opening Bell, Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.