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Cramer on Yum earnings: 'This is inexplicable’

CNBC's Jim Cramer said Wednesday he is baffled by Yum Brands' latest earnings miss.

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.