Stunned investors sent shares of Yum tumbling after the company said sales in China were expected to fall 4 percent. Is China's economy in trouble?
On the Street, Yum Brands, the owner of KFC, is widely considered a proxy stock for China growth. More than half its total revenue and operating profit for the third quarter of 2012 come from China.
"I think of Yum as a Chinese dog with and American tail," Cramer said. Also 44 percent of its sales come from China."
Should you take the data from Yum as a sign that China is backsliding? Although recent economic data from Beijing suggested China's economy was stabilizing, are those numbers false?