Results that came in significantly below expectations. Sabmiller rejects inbevs takeover offer saying the 42. 15 number is still below what they want. First up, yum brands will take a hit in the premarket. The home of kfc, pizza hut and taco bell missed with Third Quarter results. Greg creed says the pace of recovery in yums China Division is below expectations. In q3, we were looking for a 9. 6 number. They used the words unexpected headwinds, despite everything we know about what is going on there. Lets understand i know david tweeted what does this say about china growth. I say what does this mean about execution . Nike is selling a lot of shoes there. Starbucks has had a fantastic run. Apple is selling well. Samsung, verification of that. Samsungs business strong with apple. This is inexplicable. I think people are tired of it people are tired of the breakup story, the sum of the parts, when will it happen . You dont break a company up when the business is bad, because we just get a bunch of parts we dont want. I question kfc and its execution. I question the longterm love that the chinese had when they used to get married at kfc. Theres a secular change. What i tweeted yesterday is whether wanted or not, it conceivably will raise questions about the consumer. Your point is the right one from what im hearing this morning and others are upset with the company about their own communication. Pointing out, i think it was in august, august 18th with 2 1 2 weeks left in the quarter, they said im especially pleased, this leadership transition comes at a time that samestore sales have turned significantly positive demonstrating continued recovery in the business. There are those saying there are only 2 1 2 weeks left in the quarter, it was this bad and you were saying that . Shocking to me. They just lost control. Thats how you feel. There were two companies that reported last night after the close. One was adobe, they issued what i wanted to see. Stock went down 10. Yum issued exactly what i wanted to see, down 10. Adobe should have been up. Yum is correct to be down 13. I think there are activist hedge funds here who took the plunge, not up like macys and forgot the numbers do matter. They do matter. 12 div hike. Bernstein today saying the pressure to unlock value starts anew. You dont think losing taco bell helps . Taco bell was one of the few things that was good. I went by a taco bell with my daughter this weekend in oregon. She didnt say thats the worst place on earth. She said theyre trying to make changes. Taco bell is showing some life. Theres a pulse there. You dont see that as the downstream to alcoa, for instance . No. I would much rather use alcoa doesnt they actually have a 3d product, alcoa is a technology ycompany. Yum, when you go to a european yum, not up to snuff. Easterbrook is taking a brand, you know im a fan of easterbrook especially after that conversation we had. After i compared their big mac unfavorably to goodyear tires. Mcdonalds is making a lot of changes. Yum is making changes but going in the wrong direction. Im not there for this. I didnt see that number there. Lets call it 70 bucks, maybe below that . Yeah. Still talking around a 20 multiple how is that possible . Is it chipolte . My question to you then is what is an appropriate multiple given what were seeing from this company . Hence where should the stock be . When you have a shrinking earnings base, its hard to come up with a multiple. I would tell you that to have that level of multiple in an uncertain environment seems wrong to me. Thats a takeover and break up premium. If you have to look at this company as a regular restaurant chain you would put it in the bottom quarter. To be clear, you dont expect as earnings start to come in that the nikes and starbucks of the world to confirm what theyre saying totally the opposite. Yum, i love david novak. I know david ran that company well. Theres a transition that happened. These this is unacceptable. Really unacceptable to give that guidance. When i hear that, i immediately think, not that they were lying, not at all. Just that they didnt know. Something is very wrong. Wasnt like the last week suddenly everyone decided to go chickenfree. Some sort of vegan thing. You know, that vegan thing . They do that thing . Where they lose a lot of weight and stuff, eat protein pills . All right. You mentioned activist investors. Dan lobe owns a big stake and corbex a sizable stake. Both of which will see significant dimmunition of the dollar stakes. I will contrast that were starboard. Starboard went into darden, green field. You still cant get into an olive garden. I have a show on cnbc, i have i have been on the today show. I cant jump the queue there at olive garden. You ought to try it. Unlimited salad. Wear the cargo pants, those rolls, you can take them up. Yum brands didnt have a lot to work with. David, im disappointed in the actual forecast than i am more in the decline in sales. All right. Lets move on to beer, shall we . Of course being goings on. Its early. Sabmiller rejects anheuserbuschs inbevs sweet takeover. Sab says the latest bid substantially undervalues the brewer. Altria comes out and supports that proposal. Its 42. 15. 42 Something Like that 4. 41 of the offer is in ab inbev stock. That has an effect of bringing down the overall value. This was pointed to in the press release in which sab says we dont believe this values the company where it deserves to be. When this began, there was much expectation we might get a price around 42. Many thought that price was appropriate for ab inbev. Lets step back and tell you where we are. One week to go before october 14th, the drop dead date, if you will put up or shut up. If the board says no on that date, theres no engagement, its possible that this they will go away, ab inbev. It canning extended by the board of sab that put up or shut update by two weeks at a time. But its unclear whether that will be the case if they cant reach something between now and then. At this point, judging from comments on a carlos call thats been ongoing, there hasnt been much engagement of any significance in terms of making progress. They said no, no, no. No to 38, no to 40, and no this morning to 42. 15. Of course arguing 42. 15 is really not that number because the huge component of the stock part of it, if you will, designed for altria, which is going along, and the Santa Domingos which arent. Alejandro santo domingdomingo. If you want to find out whats happening here . Find that guy. Hes on the board of sab. Continues to be. He is the worlds most interesting man at this moment . He may be. And on the Conference Call they said the Santo Domingos are not on board. The question is why and what are they trying to accomplish now in terms of really saying no or trying to get a higher price in the next week out of ab inbev that satisfies them and can be used to bring the rest of the board around. The strategy, jim, had been on the ab inbev side, lets get altria and the Santo Domingos on our side. Once we get that really, they have six boards, seats between them, well get the rest of the company. Santo domingos are not on board. Thats the key question here in terms of where this thing goes. David, people at home, they listen, they say what do we do. I want to know this. Does this raise the possibility that tap, coors is going to be a big winner. Constellation brands reported one big blowout number. I want to buy tap. You do want to buy tap if you think theres a likelihood that the deal happens. If the deal doesnt happen, none of those transactions occur, many people have played the prospect of this deal by actually buying tap, as you say, because they believe molson c e coors will be in an adavvantages position. Theres seven days. They wont answer the question specifically, will you go hostile . Will you bring a tender offer to shareholders directly . I heard all along, no, they most likely not. They want this to be recommended by the board. They want this to be a negotiated transaction. It becomes difficult to bring a hostile offer given the sizable stock component that they have designed specifically for the Santo Domingos and for altria. Its a fiveyear lockup from closing. 41 of sab shares, a separate class of abi shares as well it can then be converted into ordinary shares one for one at the end of the fiveyear period. There he is, find that man. Alejandro Santo Domingo. He holds the key. They have two board seats, the Santo Domingos. They are very close to 3g. Clearly at this point, and breedo said it on the call, we dont currently have their support. They are the key t seems to me to bringing the rest of sabs board into line, perhaps, if they do agree. Whats the number . They havent said best and final. Is it 43 . 43. 50 . Where do we end up here . The clock is ticking. If its good enough for altria, why not good enough for alejandro . Good question. Altria, very smart question what is alejandros card here . I think saying no. Wow. This would be good for the whole industry. He ought to wake up and smell the hops. Then again, youre 30something years old. Nice looking good. Im a 60yearold guy, not that nice looking, he should take the deal. Alejandro, welcome to join us on post nine. Any time. Well talk to him about what hes thinking. You think hes up yet . I have no idea. Was he up all night . Maybe he was. Ernie herman expected to be ceo of the company. The best retail ceo of tjx. She will not come on. She will not hype herself and say how great she is. Look at what she has done with that stock. Shes so, so good. I salute you, carol. I wish the best. Sorry, i dont want to buy the stock as much now that youre not involved. Yes, i have clothes on right now that i bought at tjx. Im a constant user of their product. Home goods . You cant see them thats the point. I could show you during the break. Maybe not. Maybe not. Maybe thats too much information. More morning is getting more exciting by the moment. We have gotten the beer already now underwear. When we come back, saudi prince alwaleed doubling his stake in twitter. Should you follow the princes lead . We will get pierce storage today. Monsanto laying off a good percentage of their work force. More on that when squawk on the street continues. That man . Dad hes our broker. He helps looks after all our money. Kid do you pay him . Dad of course. Kid how much . Dad i dont know exactly. Kid what if youre not happy . Does he have to pay you back . Dad nope. Kid why not . Dad it doesnt work that way. Kid why not . Vo are you asking enough questions about the way your wealth is managed . Wealth management at Charles Schwab [get up to 48 monthsw interestfree financing on tempurpedic. Save 300 on beautyrest and posturepedic. Or choose 300 in free gifts with Stearns Foster. The triple choice sale ends soon at sleep train. Going to join the dow joins transportation average on october 14th it will replace conway. American air up in the premarket on that news. Actually will increase the weighting of airlines in the index. Reflecting the larger total market cap of companies in that subgroup relative to, say, trucking. Thats a shame. I think trucking is is a better indicator of the economy. Thats why i look at the transports to confirm the dow. You have to be careful with these stocks. Oil is really shooting up. You know, look, were set up to have an up opening. I have to see the drug stocks bottom. The airlines, they were terrible yesterday. Im looking at those key groups. I need to see the high Growth Semiconductor go down. Those are been the core weakness. Biotech has been horrible. Im not buying this. This opening is guilty until proven innocent, particularly american air and united. Well watch that closely. A story i know youre interested in, saudi prince alwaleed and his investment hold having doubled their stakes in twitter, according to a statement from the princes office. Together they own more than 5 of twitter, thats a total of 35 million shares. Its more than Ceo Jack Dorsey owns. What do you think . Its great to see someone buying, not selling. I think, as you have, those of us who have been moments is exciting. Perhaps the prince feels as some of us do, this was a product story. How do you lure the people back, lure im from philadelphia, i apologize lure people back. The prince is someone i have been following historically, hes always ahead of the game. Delightful man. He never sells. He told me that eight years ago in an interview. I will never sell. Never sell. That was more of an he was trying to bring up the Insider Selling at twitter versus when you have him as a holder, you can bank on the fact hell be there. I think he still owns citi. I will tell you that the guy has got a great reputation of picking bottom and twitter has been in search of a bottom. Ive been reaching out to jack and anthony to give them kudos. Well look and see what people are saying and may want to see. Its gotten good reviews, we need the ad buyers to follow. We need adam bane to say how theyll make money. If you build it and the viewers come, they will come. I think its a very exciting buy. Ive been tweeting since 3 30 this morning, and i am only tweeting nice things. My daughter taught me i learned so much this weekend. You learn so much from your kids. Its very simple. Twitter twitter, if we amake it a kinde, gentler place thats why instagram has done so well. I feel like a cowboys fan sitting in the linc, the beer poured on me. No, we get the beerpour ers away, we get a better twitter. You get me . I do. You do . I do. Pure storage going public at the big board. Well get you that opening trade and the ceo later this morning. Weve got trouble in tummy town. Peptocopter when cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder fix stomach trouble fast with pepto. All right. Time for mad dash on hump day. We will go back to beer but a different company. Rob sands, who is the ceo of constellation brands, was the beneficiary of a big Justice Department give which was the modell and corona. He has taken them to new heights. Hes a great operator. Those who know him know hes on a great operator. Look at this number here. Beer net sales increase 14 . Volume growth, they are get this amazing. They represent 45 of total u. S. Beer industry volume growth. Wow. The hardest thing when youre running things, keeping it in stock. David, i only have two taps. I dont need more taps. They are my best seller and it is for a lot of people in the country. This company has the leverage. By the way, it was over here. So its yeah. A lot of people here. Talked about tjx. This is such a good company. Yes. It has all the momentum, but it shows you consolidation in beer, if molson coors gets it. If you are altria if ab inbev prevails, many divestitures will have to take place, including molson coors and sabmiller were sabmiller would sell back to molson coors. I the Justice Department, i wonder if they know ipa is a beer . Ipa tastes like a bread. Does . Yeah. A little cornmeal. I like beer, as beer should be. Corona. We have a lot more, not just on beer but other stocks and other things to watch on squawk on the street after this. 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Well hear some volume from the floor today. This is pure storage leading the opening bell. Celebrating its ipo. We will talk to the ceo of that flash Storage Company. Im told they brought in at least 100 employees and guests. This is a real company with real customers, conoco philliped, f. They can do cloud. People will say, jim, 174 million in revenues. 183 million in losses. I hate to say this, it always comes back to bite you, sometimes companies are growing so fast, its okay to take the loss this is one of those times. One of the companies we name to our cnbc disrupter 50 a while back. A number of which companies on that list have gone public, twitter, box, lending club, etsy and now purestorage. Hopefully they can have a smoother ride. We have this weird dichotomy, we have microsoft and intel stock moving higher, and we have the skyworks yesterday doing poorly. Where does this fit in . The more aggressive workday category, the highest multiple growth stock other than the Palo Alto Network security stocks. We have to watch this this could be a tale of the tape. Europe, the guys in pajamas dont know what theyre doing. Europe is up beca