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.
Louisville, Ky. (1997)
Chairman/CEO David Novak
Return on Capital (Average, Past 3 Years)
$1.25 billion / $3.23 billion
McDonald's (NYS: MCD)
Sources: S&P Capital IQ and Motley Fool CAPS.
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.
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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.