The parent company of KFC had been struggling of late. Is the worst over?
Back in October, investors ran for the exits after Yum! cut its full year earnings forecast and said profit fell 68% for the third quarter, in part, due to weakness in China.
"For a long time it looked like Yum! was taking China, their largest market, by storm, but then the Chinese economy started slowing and the company really took it on the chin, exacerbated by some health scares and super bad publicity related to the chicken used in KFC," Cramer explained.
Overseas weakness is a big issue for Yum; the company gets about three-quarters of its revenue from outside the U.S.
Developments spooked investors so badly, shares fell almost 10% in a single session.