Enter multiple symbols separated by commas

Yum! Stock Falls on Downgrade, E.coli Concerns

Yum! Brands shares fell after an analyst downgraded the stock due to concerns about slowing sales momentum in the U.S. and difficult upcoming sales comparisons at KFC and Taco Bell.

Wachovia Securities analyst Jeffrey Omohundro, who lowered his rating on the stock from "Outperform" to "Market perform," also said there could be a short-term, although potentially significant, negative sales impact at Taco Bell related to its recent E. coli outbreak in the Northeastern United States.

U.S. regulators said on Friday that 63 people in six states have fallen ill in an outbreak of E. coli cases, most of which are linked to the Taco Bell chain.

In a conference call, U.S. health regulators called the outbreak "ongoing" and said they have not confirmed the exact source of the bacteria. They are testing a variety of food samples.

Taco Bell closed a number of stores voluntarily and pulled green onions, also known as scallions, from all of its 5,800 U.S. restaurants after tests showed three samples were "presumptive positive" for a strain of E. coli.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.