The parent company of fast food restaurants like KFC and Taco Bell posted third-quarter earnings per share of $1 as same-store sales in China grew just 2 percent.
"I come back and think 'what does it say about execution' because we know Nike is selling a lot of shoes there; we know that Starbucks has had a fantastic run; we know that Apple … is selling well," Cramer said on "Squawk on the Street."
Yum Brands also lowered its full-year guidance, saying it expects "EPS growth to be low-single-digit positive."
To which Cramer said: "It's really unacceptable to give that kind of guidance because, when I hear that, I think that they didn't know, and it wasn't like everyone suddenly decided to go chicken-free."
Yum's stock plunged nearly 20 percent in late-morning trading Wednesday, slashing about $7 billion of its market value.
DISCLOSURE: Cramer's trust owned shares of Apple and Starbucks.