Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food giant Yum! Brands
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 | $23.24 billion |
| Industry | Restaurants |
| Trailing-12-Month Revenue | $11.34 billion |
| Management |
Chairman/CEO David Novak CFO Richard Carucci |
| Return on Capital (Average, Past 3 Years) | 24.1% |
| Dividend Yield | 2% |
| Competitors |
Chipotle Mexican Grill
McDonald's
Wendy's/Arby's |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 2,979 members who have rated Yum! believe the stock will outperform the S&P 500 going forward. These bulls include Speachless and shanelofgren.
Late last year, Speachless tapped Yum! as a particularly tasty pick: "Great products with KFC, Taco Bell, Pizza Hut. Great way to play the China Market with a US based multinational."
In fact, Yum!'s three-year average return on capital (24.1%) tops that of fast-food foes Chipotle (18.4%), McDonald's (17.2%), and Wendy's/Arby's (4.1%), as well as other restaurant stocks like Starbucks
CAPS member shanelofgren elaborates on the bull case:
They are aggressively focused on exactly the right segment of exactly the right market: fast food in emerging market economies, especially China. They're thus benefiting not just from the economic changes but also the cultural and demographic changes. ... Once recovery happens things should take off, though it seems that, given the growth of their share price, their [cash flow] should have grown faster, leading me to worry that they're too expensive right now. Still, their P/E is only 21, so they're not too out of control.
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