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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 (NYSE: 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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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.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 13, 2012, at 9:58 PM, jbob75 wrote:

    I have been a very strong supporter of YUM! since my first trip to China in 2006 when I saw a line around the corner for a Pizza Hut in Shanghai. Even more impressive is the sheer volume of KFC restaurants in the country. It is clear that the Chinese are taking to fast food and YUM! has a dominant lead outpacing McDonalds stores 3 to 1. All of that being said, YUM! is at the highest P/E that I recall in watching the stock for 5+ years (on 1/13/12 ~$61+ per share). Buy this stock but wait for a better price.

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I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

7/25/2014 4:00 PM
YUM $74.04 Up +0.20 +0.27%
Yum! Brands CAPS Rating: ****

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