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 | $33.3 billion |
Industry | Restaurants |
Trailing-12-Month Revenue | $12.9 billion |
Management | Chairman/CEO David Novak |
Return on Ca[ital (average, past 3 years) | 24.3% |
Cash/Debt | $1.1 billion / $3.3 billion |
Dividend Yield | 1.6% |
Competitors | McDonald's |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 3,217 members who have rated Yum! believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, hend6, succinctly summed up the bull case for our community:
Already well-established in North America, Yum! Brands has continued expanding overseas and it shows in their revenues. While their P/E is getting a bit high, I think that the increased profits from their expansion should keep this balanced over time. Of course, it helps that I'm a big fan of their franchises and don't see them going anywhere soon.
If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Yum! may not be your top choice.
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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! Brands and McDonald's. 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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