4-Star Stocks Poised to Pop: Yum! Brands

Updated

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

$28.0 billion

Industry

Restaurants

Trailing-12-Month Revenue

$12.1 billion

Management

Chairman/CEO David Novak
CFO Richard Carucci

Return on Capital (Average, Past 3 Years)

23.3%

Cash/Debt

$1.25 billion / $3.23 billion

Dividend Yield

1.9%

Competitors

McDonald's
Wendy's

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 3,134 members who have rated Yum! believe the stock will outperform the S&P 500 going forward.

This past fall, one of those Fools, divinezone, tapped Yum! as a particularly tasty 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.

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.

Despite a strong four-star rating, Yum! may not be your top choice. We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Yum! and McDonald's. The Fool owns shares of Yum!. 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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