5-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 coveted five-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 | $25.9 billion |
Industry | Restaurants |
Trailing-12-Month Revenue | $12.1 billion |
Management | Chairman/CEO David Novak |
Return on Capital (Average, Past 3 Years) | 23.3% |
Cash/Debt | $1.25 billion / $3.23 billion |
Dividend Yield | 2% |
Competitors | McDonald's (NYS: MCD) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 3,129 members who have rated Yum! believe the stock will outperform the S&P 500 going forward. These bulls include divinezone and billtank.
Just last month, divinezone tapped Yum! as a tasty international pick:
Truth is, fast food is a growing and popular industry; the convenience, inexpensiveness, and deliciousness of fast food is beginning to catch on globally. YUM's exposure to emerging market economies, as well as the economically uncertain times YUM now operates in, both can be major catalysts for this company to continue its impressive growth.
Currently, Yum! even sports a cheapish price-to-cash flow of 12.5. That's lower than that of industry peers like McDonald's (14.2), Chipotle Mexican Grill (NYS: CMG) (26.6), and Starbucks (NAS: SBUX) (20.8).
CAPS member billtank elaborates on the Yum! bull case:
With the internationalization of companies marketing to the consumers in the second and third world countries the potential for successful growth is tremendous. One big example of this is the success in the way the Chinese have taken to KFC! Yum Brands is on the cutting edge of fast food around the world. A very good allocation to diversify into global markets.
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!
Interested in another easy way to trackYum!?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Yum! Brands, Chipotle, and Starbucks. Motley Fool newsletter services have recommended buying shares of Yum! Brands, Chipotle, McDonald's, and Starbucks. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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