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.
|Founded (founded)||Louisville, Ky. (1997)|
|Market Cap||$29.1 billion|
|Trailing-12-Month Revenue||$12.9 billion|
|Management||Chairman/CEO David Novak|
CFO Patrick Grismer
|Return on Capital (average, past 3 years)||24.3%|
|Cash/Debt||$1.1 billion / $3.3 billion|
|Competitors||Burger King Worldwide|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 3,238 members who have rated Yum! believe the stock will outperform the S&P 500 going forward.
[Yum!] is going to outperform over the next four years because it is continuing to expand in emerging markets such as China and India. ... If you think that [Yum!'s] growth period is over, you are sadly mistaken. Consider this fact. In the U.S. [Yum!] has 58 restaurants for every 1,000,000 people. In emerging markets, [Yum!] only has 2 for every 1,000,000 people. What this means is that there is going to be strong growth in emerging markets for an indefinite period of time.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of McDonald's. Motley Fool newsletter services have recommended buying shares of 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.