4-Star Stocks Poised to Pop: Yum! Brands
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food giant Yum! Brands (NYS: YUM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Yum!'s business and see what CAPS investors are saying about the stock right now.
Yum! facts
Headquarters (Founded) | Louisville, Ky. (1997) |
Market Cap | $23.7 billion |
Industry | Restaurants |
Trailing-12-Month Revenue | $11.66 billion |
Management | Chairman/CEO David Novak |
Return on Assets (Average, Past 3 Years) | 24.2% |
Cash/Debt | $955 million / $3.3 billion |
Dividend Yield | 1.9% |
Competitors |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 3,044 members who have rated Yum! believe the stock will outperform the S&P 500 going forward. These bulls include kpoeppel and gweech.
About a month ago, kpoeppel tapped Yum! as a tasty total-return opportunity: "There's a KFC on every corner in Shanghai and Hangzhou. Good lower-risk way to play China. They're constantly raising the dividend and bought back significant stock in 07 and 08."
Over the past three years, in fact, Yum! has grown its dividend at a solid rate of 16% annually. That's faster than other restaurant plays like McDonald's (1.9%) and Brinker International (NYS: EAT) (12.1%), let alone Wendy's average dividend decline of 40%.
CAPS member gweech expands on the Yum! outperform argument:
Invincible brands -- Taco Bell and KFC. No matter how many lawsuits or negative press or health concerns, they make tasty foods and most average joe people love to eat them. International expansion of KFC is crucial. I ate at a KFC in Saigon and it was one of the classiest places in Vietnam. Fried chicken is a status symbol for wealth and affluence in some places in the world.
What do you think about Yum!, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Yum! and McDonald's. The Fool owns shares of Yum!. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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