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Fast Money

Pro: Buy this fast-food stock

Pro: Buy this fast food stock

Yum Brands, operator of Pizza Hut, Taco Bell and KFC, reports earnings Wednesday afternoon, and "Fast Money" trader Tim Seymour says you should buy the stock on the dip he expects after earnings.

Seymour believes there are three major obstacles the company has to overcome: currency volatility, a CEO change and a slowdown in China. And issues in its China sales have been a problem for the company over the past three years. He expects Yum Brands will have a disappointing quarter, but that will give investors a chance to buy the stock.

"Look at the levels, $70 is a long-term level the stock has held over the last two years," Seymour said. "This is a level I think the stock will trade back down to, because they've disappointed the last three earnings numbers."

Seymour recommends taking profits at about $80 a share, while using the $65 level as a stop out. Over the past year, shares of Yum Brands are up about 10 percent.

DISCLOSURE: Tim Seymour has no position in YUM

Follow Tim Seymour on Twitter @timseymour.