What Is Social Data Saying About The Yum Disaster?

Eight weeks ago we sounded the warning bell on Yum! Brands, Inc. YUM due to dropping social sentiment and social volume.

Here's what we said at the time:

"That kind of consistent slide in sentiment, especially under 80% positive (a decent benchmark) is very concerning.Combine it with the drop we are seeing in social volume, and you know there is trouble on the horizon:"

Yesterday, Yum reported earnings that resulted in the stock getting pummeled today, down over 17 percent as of this writing.

BUT now for the good news!

We have actually seen a major improvement in both sentiment and purchase intent volume for Yum Brands over the past two months:

This means that the worst may have occurred in the prior quarter (being reported on today), and that YUM shares could be a bargain on this selloff as the company turnaround begins….

They may not have the kind of boost McDonald's is getting from All Day Breakfast anytime soon…but the worst is probably over for Yum.

We will keep watching the data in the LikeFolio App to see if this turnaround is something sustained that will make the next earnings call just as interesting (and profitable!) for social-data traders as this report!

– LikeFolio provides research on companies based on purchase intent and sentiment data gathered from consumers on social media.