when there still isn't any stabilization in kfc. taco bell might be added to china. >> they don't have taco bell in china, but it could be introduced over time, yes. >> new ceo, members from taco bell. >> the new ceo of china or yum! overall? >> yes, the new ceo for china, he has a good reputation. look, i think that this is something that we've wanted. i would have liked it not to be done at the point of a gun, which i think you can tell us more about corvex and what happened. >> april keith meister introduced the idea of a split, at least to the public, but it does appear as is often the case that this is not something that was foreign to the company, jim. >> right. >> it had been something they certainly had been thinking about and taking a look at was their pace quick nd as the result of him showing up as a significant shareholder and publicly stating he wanted to see this ham? probably. >> last week he was added to the board of directors. >> right. >> well, now they got it done. now, it's not as though they got it done in a weerks they've been working on it for quite some time. to

what they want. >> first up, yum brands will take a hit in the premarket. the home of kfc, pizza hut and taco bell missed with third quarter results. greg creed says the pace of recovery in yum's china division is below expectations. in q3, we were looking for a 9.6 number. they used the words unexpected headwinds, despite everything we know about what is going on there. >> let's understand -- i know david tweeted what does this say about china growth. i say what does this mean about execution? nike is selling a lot of shoes there. starbucks has had a fantastic run. apple is selling well. samsung, verification of that. samsung's business strong with apple. this is inexplicable. i think people are tired of it people are tired of the breakup story, the sum of the parts, when will it happen? you don't break a company up when the business is bad, because we just get a bunch of parts we don't want. i question kfc and its execution. i question the long-term love that the chinese had when they used to get married at kfc. there's a secular change. >> what i tweeted yesterday is whether wante

accepting apple pay next year. >> starbucks will do that, chili's, kfc. apple pay is just starting to gain traction. >> starbucks was almost faster than apple when it came to electronic payments. they were so quick about you being able to use the app to pay, et cetera. pretty impressive. >> i did the story earlier today elsewhere, but 22 million people use some form of mobile payment right now. it's up 42% this year. i'm just full of all the statistics. twitter announcing a new way for marketers to push video ads on its platform. the new option allows marketers to automatically place six second pre roll ads in front of the video that you came to see in the first place on your twitter feed. this system helps publishers monetize their content and twitter will take a 30% cut of the revenue that is generated. >> the stock moving higher on that news, joining us to talk about it is lou bazanese and mat britain ceo and founder of mrc. lou, this a good move and going to move the stock? >> i think it may temporarily move the stock. i use stroou as an incremental innovation. if we're sitting he

the way they thought. pizza hut in china a problem there. ongoing issues with kfc over there. >> it's all china, but, you know, they rode china for a decade, maybe a deck yade and a half as china was growing. their businesses are linked to the economies. they were overdeveloped in china. they have been the darling of all the restaurant industry because of china and now china is slowing and now they're the dogs. they say you ought to spin off china. why? this wasn't a surprise that china was going to slow some day. they ought to be taking a ride through this thing and outlast it. >> so they're in there for the long term. what do you do? do you cut locations? cut prices? what do you do to attract customers? >> well, they have to adapt to the chinese economy. they're still growing at 20% instead of 10%. they mismanaged a little bit the messaging. they have to deal with that and they have to deal with the analysts and the 5k9 vactivists are saying you have to spin off china. i think they shouldn't. they have to adapt to the chinese market and get through it. >> and quick thought on the $2

talking about the ceo about what's going on overseas especially because that's -- kfc, yum! brands they gave us a bad number, a few other companies have let us know china is slowing down. >> it will be very important to hear not only what alcoa has to say about the global economy by the other industrials as well. we will get a bunch next week, we have a great line up next week in terms of earnings. with alcoa to your point it's more about what he says about the macro and also within the various different subsegments that they're involved. >> r. >> hold on one second, stephanie. the numbers are out. >> it looks like we're getting 7 cents -- should i go to morgan brennan on this? >> it looks like a big miss here, yes? >> yeah, so it's a miss on top the top and bottom lines, alcoa reporting an adjusted 7 cents per share analysts consensus had been for 13 cents a share. revenue of 5.5.billion that also missed street estimates of 5.65 billion. i will give you some of the bright spots and then the drag. engineered products and solutions record revenue 1.4 billion, saer space revenue up 39% ye

like starbucks is. that's something that kfc, pizza hut and several others that have been in china for the last 20 years haven't done yet and starbucks is actively doing that. i can forgive being a couple cents short on the bottom line. the fact that they beat on the top line and the other numbers are pretty strong. >> let's get back to morgan with more on financial moves from starbucks. >> investors will want to hear this. starbucks has raised its dividend 25% to 20 cents per share. we will keep combing through this release and bring more headlines as they come. >> thank you very much. starbucks shares didn't move often on that, still down almost -- i will call it between 3.5 and 4%. guy, what broader implications would you draw from that? >> from starbucks? >> yeah. >> >> i wouldn't draw any broader implications. i think there are certain companies that are unique and starbucks happens to be one of them. i'm not going to make a statement about the health of the u.s. consumer or chinese consumer based on numbers we see out of starbucks, apple, under armour, nike because in my opinion

bell, kfc and pizza hut is making big changes. the fast food giant added the activist to the board. he is one of yum's largest investors holding a nearly 5% stake. outspoken activist is also in yum. shares jumped on the news after the closing bell even though yum also lowered guidance. the stock has been hit on concerns relating to china's economic slow down. the announcement comes as the company lowered it's earnings forecast and china shares this year. it will see flat to low single profit growth this year. the strong dollar is creating head winds and will take 1 to 2% from the earnings. mcdonald's saw it's stock touch an all time high yesterday. it happened after a report that it could make a move with it's massive real estate holdings. the fast food chain restructures and positive all daybreak fast lunch. investors are loving it. back to you. >> thank you and have a lovely weekend. >> thanks. >> loving it. i like that. let's talk about the world's largest package food company. it's trading close to the bottom of the european markets after cutting it's guidance. missing estimates du

kfc owner warns trade in china is not recovering as quickly as it hoped. >> digicel shelves it's ipo plans. the ceo citing recent market volatility as the reason behind the move. >> and a midnight deadline. fiat chrysler has the rest of the day to reach a deal to avert a strike across it's u.s. plants. >>> the dow is still three days lucky. taking a look at fair value the implied open going to open higher. 105 points. look for triple digit advances. nasdaq should be advancing by 33 points or so. m&a activity alive and well. the chairman of sab miller now labeled ab inbev's latest offer for the company as being opportunistic and this comes after the large arrival offered just over 42 points per share. 42.15 a piece for sab miller after previous bids that were both rejected. shares in sab miller trimmed their earlier gains. they were up as much as 3% and now we're up by 1.2 but sab miller is going to take a look at this offer since it represents a 44% premium to the september 14th closing price and that's when they announce to the markets that they have received yet another takeover of

store sales could range from flat to up 4% although pizza hut's going to be down, f kfc is seen up. we will release sales on november 12th. >> people will say there's going to be a restructuring. steve says it's going to come before december 10th, china spin. a china spin of a company that you don't really want reminds me of the occidental spin of the california assets. it's not what we want. you want a spin of something you want. you know, kimmors. >> you don't want that. >> cc given to you by dd. >> you don't want that. >> no, that was an ff. >> it was an ff? >> yeah. grade. >> got it. double f. >> double f. >> you know, china overalthough, because nestle also is talking about china, i did note yesterday on the conference call from blackstone which controls a lot of real estate in china, particularly malls, these comments from steven schwartzman, the company's ceo. he said, while china's definitely growing, still growing faster than the rest of the world and certainly faster than the doomsday scenarios that i sometimes see on television. >> come on, man. >> our chinese shopping m

expanding it's reach. starbucks, kfc, chilis will begin accepting the mobile payment service later this year. more than 1 million stores accept apple pay and it could help broaden adoption of apple pay which allows them to wave their iphone or apple watch in front of a wireless reader to make purchases in the future. so apple shares seeing gains of .5% or so but it's in correlation with tesla's founder who is in germany and he's not mincing his words. i call this trash talking because people have been saying elon you noticed a lot of your engineers have been moving over to apple. what do you think about that and elon was like wait a second. wait a second. apple only hires tesla engineers that have been fired by the way and he says apple is like the tesla graveyard. >> i'm assuming if he's standing on the stage and has an audience therhe's trying to be a little bit light hearted. apple is a fantastic institution and how many people does it employ and how much technology have they developed. >> on that part he says an iphone and a watch is much different from building a car. he says i'm n

parent of pizza hut, taco bell and kfc is out after the close. >> let's take a look at the asia pacific section. we're looking for reaction to the agreement of the transpacific partnership which is the largest global trade deal we've seen. we saw the nikkei bounce some 1% and this might be on the back of expectations of more stimulus coming from the boj, hely as we have a hold off on the fed tightening and that could push levels to 124 and 125. also this is a shot in the arm for abenomics as well. one of the pill lars of abenomics is about trade and managing to get ratified by all 12 member governments with the agreement seen as a major victory for u.s. president barrack obama and japanese prime minister shinzo abe and both expressing optimism that maybe china who is not included in the tpp could one day join the pact as well. >> this fundamentally strengthens rule of law in the economic area. it will deepen dependency with countries. if china participates in such a system in the future it will contribute greatly toward the security of japan and the stability of the asia pacific

brand. they'll have exclusivist to kfc, pizza hut and taco bell. they'll focus on expanding the chains around the world. the split come after a series of foo food safety scandals. the separation is expected to be completed by the end of next year. a lot of people have been waiting for this. >> all right. >> where sergio goes, i go. >> cubs-mets. >> that, too. >> the new report released minutes ago on auto reliability. they were talking a few minutes ago, a big setback for tesla. phil lebeau has -- well this is the right choice of words, breakdown. >> consumer reports does this every year. they ask all of the subscribers, those that have new vehicles, tell us what works, what doesn't work in your vehicle. they got about 740,000 vehicles that they then crunched the data on. here are the most reliable and least reliable in this year's survey according to consumer reports. top of the list, no surprise. lexus. followed by toyota followed by audi and there you have mazda. that rounds out the top four. the bottom of the list, that's not good news, especially for a man down at the nyse tomorro

the parent company of kfc and pizza hut. shares in yum brands down more than 18% in after hours trading. >> well, it wasn't yummy at all. yum brands is mostly a game of chicken in china and over half the revenues come from that china and while same store sales went positive they only rose 3% and they were looking closer to 10%. end of the quarter was better than the beginning. still that has the company saying earnings per share growth will be well below the previous target of at least 10%. overall for the quarter yum grew the top and bottom lines but missed expectations. revenues were almost 7% below estimates. eps was 7 cents below the street. they all missed expectations except for taco bell but india same store sales were down 18%. three times worse than the street expected. on the plus side, taco bell had 4% same store sales growth and just opened it's new taco bell cantina, a big experiment we hope to learn about more on the conference call. pizza hut had positive sales growth and colonel sanders is in a d.c. comic coming out. kfc same store sales up a little bit more than

giant behind taco bell and kfc and pizza hut reporting after the bell tomorrow. here is what you need to know. >> this is karen short, managing director at deutsche bank here to preview yum's third quarter reports. first point, china comps and margins. they will report comps excluding the fire incident. we're looking for a 10% comp but the buy side expectations are below that. margins were well above expectations so it speaks to the possibility that it may not return to historical levels it is possible that over all profit does. and second point, china strategic options. the company has not discussed any options for china publicly one of the largest shareholders has. and regardless, or irrespective of how the division is performing, there is a very large cal rational for why the division should explore strategic options. third point, the rest of the business, china gets 90% of the attention, we expect taco bell to continue to perform well. and we expect kfv to be in line and fairly positive and pizza hut to continue to struggle. >>> net, given the stocks weaken performance today and t

, wonder why apple is left out of the rally. a top trader has the answer. >>> and kfc plunging 8% on a massive earnings miss and the bad news from china that has the street talking. jane wells is live in l.a. with the latest. jane? >> hi melissa. chicken in china has fizzled. half of the revenues come from there. and same-store sales rose only 2% and the street was looking for closer to 10%. though the end of the quarter was, quote, significantly better than the big, but that stumbled with the long dollar and full earnings share will be well below 10%. and they grew the top and bottom line but missed expectations. revenues of $3.43 billion was low. and $0.07 be lee the street. restaurant margins missed expectations except for taco bell. and india, same-store sales down 18%. three times worse than expected. on the plus side things are not like china for taco bell. 4% same-store sales growth and just opened the cantina. we hope to learn about it on the call tomorrow. pizza hut had positive same-store sales growth, albeit 1%. and finger-licking good versus evil colonel sanders is now in a

market. >> a selloff in the shares of kfc and taco bell parent company yum brands. a dismal picture of economies recovering in china. details ahead. >>> jay leno is opening his car collection on cnbc on "jay le leno's garage," and cruises by the set this morning with a sneak peek of tonight's premier. the second hour of "squawk box" starts right now. ♪ >>> live from the beating heart of business, new york city, this is "squawk box." ♪ >>> welcome back, everybody. this is "squawk box" here on cnbc, first in business worldwide, i'm becky quick with joe, and andrew is on assignment today. we are looking at a positive open this morning. at least rat this point, dow up 65 points, up triple digits earlier this morning, but holding gains at this point. s&p futures up by 7 point, and nasdaq up by 22. among the top stories this morning, shares of yum brands pummelled in the premarket trading, down 18% after reporting earnings and revenue well short of what wall street expected. 2% sales growth in china is what they had versus the expecting 9%. that's why you see the shares under pressure th

chinese economy. >> kfc. >> pizza hut. >> i think there is resiliency in the stock. i think there's some surprise that the stock has done as well as it's done so far today. i think the risk potentially after this earnings result is to the up side because i think most people still are suspicious that they can continue to perform the way they have. >> all right. we're talking about mcdonald's and young brands. we've talked about pepsi. after reporting better than expected erpgz. our sarah eisen is looking at the pepsi pop. sarah. >> pepsi pop is right. pepsi surprised the street in a good way all around. i picked out a few numbers to highlight what a strong quarter it was for the snack and beverage company. 4%. that's how much the north american beverage business grew during the quarter. that was largely nonsoda. gatorade, bottled water, coffee, tea. it shows that the strength is happening outside of today wra and in the u.s. market. frito-lay also strong in north america. 12%. that's how much the strong -- peps where i is a big player in russia wra and other emerging markets whose cu

will be in the low single digits, and while china has problems, more on the pizza hut side and kfc. creed said china is still growing, and "we wouldn't trade places for anyone," and he would not comment, guys, on repeated requests for information on whether the company might change its structure or separate its china business or do something different because taco bell, for example, is doing great. >> josh, you were looking over here. >> certainly the yield looks better now. let's not mistake this for anything approaching a bond like equity. i interviewed with a monthly chart, which is preebl the smartist thing to do. $65 has been repeatedly the level where the buyers come in. that support. >> you get a lot of sellers in there. not the kind of thing i would be racing in to buy, but it is a solid company with a global presence. they will figure it out. >> did they kitchen sink the quarter? >> creed is still fairly new in that swrob. he was running one of the divisions, so he was brought in to become ceo. i don't remember which. he is still a relatively new ceo, and you wonder, to yo

chains kfc and taco bell to report earnings of 1.07 a share, revenue of $3.68 billion. >> before fried chicken and pizza we have to talk about egg mcmuffins. it's the day you will finally be able to get your egg mcmuffin at any time of the day. shares of mcdonald's are higher today, up by .75% and hitting a 52 week high. >> will it live up to the hype? nick says it smells like desperation but dan fitzpatrick thinks it's a good move. >> nick, we know the day part has worked for them, we know the margins are fatter in that time of the day. why don't you like this? >> you know, when it worked for them they were trailblazer the day part. everyone else followed suit. it was really led by coffee and the coffee at cash rates are what makes that day part profitable. afternoon, dinner day part, you are not going to see those type of coffee attach rates. it's highly likely that those margins will be poorer than the rest of the day. franchisees are already up in arms against continuously lower profits year after year. i'm not sure how this address that is issue. >> dan, the strategy has been buil

, kfc and chilis will begin accepting the mobile payment service this year. the roll out could help the tech company to broaden it's consumer appeal and adoption of apple pay which allows users to -- all you have to do is wave an iphone or apple watch now in front of a wireless reader to make your purchases. how cool is that. >> what happened to your starbucks this morning? >> i was running into make up and i didn't get a chance to hear it. >> i'm so impressed by technology. this morning have the starbucks app on my iphone. part of my three pages and before i headed out this morning i just ordered my latte. i picked the starbucks i was going to pick it up at and i just picked it up. it had already been paid for through my app and got back in the car and rolled on to work. >> first time it uses that. >> wow i haven't tried it yet. don't you ever change your mind? like between leaving? >> you have to be committed. you have to be committed at that point. >> sometimes you know i think i'll have a normal coffee and then when i get there i see the pumpkin spice latte and go for that again. >>