Yum! Brands, Inc. (YUM)

2Cores (81.61) Submitted: 4/2/2008 4:13:25 AM : Start Price: $36.99 YUM Score: +12.92

Chicken in China. Who knew? Just in time for a growing middle class and some finger licken Olympic crowds. Besides they need something other than a steady diet of pork. Pork fat may rule but have you seen Emeril lately? I've decided that anyone who eats primarily pork is destined to look like the critter themselves.

jbobroff (36.11) Submitted: 2/12/2007 3:07:49 PM : Start Price: $28.64 YUM Score: +42.50

I have been to China 3 times in the last year and have seen three very important things: 1) a lot of KFCs and Pizza Hut stores 2) Long lines including lines out the door at a Pizza Hut in Shanghai on a Saturday night and 3) a number of suppliers producing product (packaging, etc) for KFC and talking about the growth of that business. Combine that with increases in wages (20-25% per year) in China creating improving standard of living for the working class (therefore, more customers for quick-service restaurants), a dominance over McDonalds (beef is not as big of a part of the Chinese diet), and a first mover advantage in China, and you have a clear winner for the next 5-10 years.

TheGreatSatan (99.98) Submitted: 12/11/2006 5:43:35 PM : Start Price: $27.91 YUM Score: -44.77

Under this umberella can be found some of the nastiest restaurant chains on the planet. Underperform just on principle.

NetscribeRstrnts (< 20) Submitted: 12/12/2006 9:00:36 AM : Start Price: $27.91 YUM Score: +44.77

Yum! is becoming “Yummier” day by day

Yum! Brands, Inc. is the world's largest restaurant company in terms of locations with over 34,000 restaurants in over 100 countries. Four of the company’s restaurant brands - KFC, Long John Silver's, Pizza Hut, and Taco Bell - are the global leaders of chicken, quick-service seafood, pizza, and Mexican-style food categories. Moreover, the company’s fifth brand, A&W Restaurants, is the longest running quick-service franchise chain in America.

Yum! Brands has just begun to capture the huge new unit opportunities in its international businesses, where it has very little competition. Nearly 50% of the company’s profit comes from its international businesses. Apart from this, the company is in the right international markets with a head start in China. The company is also focusing on other high-opportunity markets like India and Russia. In addition, the company eyes at about 60% profit from international businesses in the next five years.

Yum! Brands is planning to focus on its four key strategies - building dominant restaurant brands in China, driving profitable international expansion, steadily improving its U.S. brands and operations, and adopt multi-branding in mature locations. By this, the company expects an overall growth in the U.S. operations, as well as in international markets. The company’s U.S. operations are struggling to grow as its Pizza Hut brand has taken a hit in the U.S. and has been showing a declining trend in the comparable store sales for the past five quarters. The company is trying to rebuild the brand by developing WingStreet, which looks like an attractive co-branding option for the maturing Pizza Hut brand.

Nevertheless, the dual-income households’ and consumers' increased desire for convenient meal solutions provide an attractive landscape for long-term sales growth in the restaurant industry. Yum! Brands, Inc. has developed a strong portfolio of quick-service restaurant chains with promising domestic and international growth opportunities and has become an innovative leader in the restaurant industry thereby offering good prospects to the investors.

PaddyFahey (78.39) Submitted: 9/28/2006 7:01:38 PM : Start Price: $24.76 YUM Score: +56.10

Yum Foods are the dominant fast food in China. As China goes so goes Yum Foods. It appears that KFC and Pizza Hut are very popular so much so that a new store is being built a day in China.

sandvig (99.67) Submitted: 1/14/2009 12:38:03 PM : Start Price: $27.96 YUM Score: -5.94

Chicken, pizza, tacos. Pretty darn simple.

America is the undisputed world leader in junk food. The opportunity is ripe to take our expertise abroad. YUM has the equivalent of three Michelin stars- one for KFC, one for Pizza Hut, and one for Taco Bell!

They generate over $1 billion each year in cash from operations. They have a return on equity above 67%. They have more fast food outlets than anyone else (even McDonald's).

esxokm (92.72) Submitted: 8/30/2006 6:50:55 AM : Start Price: $23.21 YUM Score: +63.25

Yum! Brands is a collection of three of the best-known fast-food franchises: Pizza Hut, Kentucky Fried Chicken, and Taco Bell (well, I suppose pizza isn't that fast).

The company's five-year chart is a thing of beauty. Long-term holders should be rewarded via decent dividend increases. There is a firm China strategy in place; in fact, many look at YUM as a play on this important portion of the global marketplace.

When the company figures out how to get all brands firing at the same time, and when the powers that be learn to leverage the all-three-brands-under-one-roof strategy to its maximum potential, then the stock should really take off. That will take time, however; so far, though, it's been a good ride. Considering that these three brands are very recognizable and possess a lot of value to them, I think the ride has a great chance of continuing, even with the volatile bumps in the road that any stock must suffer.

ghack (< 20) Submitted: 6/8/2006 9:21:40 AM : Start Price: $24.35 YUM Score: +51.90

Large and diversified restaurant chain expanding very rapidly in China
Capable management, strong balance sheet
Undervalued.

HonestK (95.01) Submitted: 10/23/2006 10:31:49 AM : Start Price: $27.25 YUM Score: +44.77

An American company that is aggressively and successfully doing business in China. Good food, strong brands, lots of new hungry customers in emerging economies with hard earned cash to spend. What's not to like?

Cigaroo (53.82) Submitted: 5/30/2007 4:16:49 PM : Start Price: $32.10 YUM Score: +34.89

There's lots of growth left in this group of strong companies. And their product mix is excellent - I especially like Taco Bell's contributions with exciting new ways to serve up beans, tortillas and chicken. This is an outperformer over the next year or so...AND in the next 5-10.

buckpower (92.61) Submitted: 8/29/2006 12:22:52 AM : Start Price: $22.68 YUM Score: +66.55

expanding in the china market

janorob (< 20) Submitted: 12/27/2008 12:48:27 AM : Start Price: $29.71 YUM Score: -8.65

YUM is developing new stores in China and India. Also, with the American economy just limping along, people are opting for fast food rather than sit-down restaurants. With KFC, Pizza Hut, Taco Bell, Long John Silvers and A&W Root Beer under its umbrella, YUM is strongly positioned to outperform. I have a small position in YUM and am planning on increasing htat position after the new year

coryjobe (88.51) Submitted: 5/16/2007 8:44:14 PM : Start Price: $31.33 YUM Score: +36.07

operates as a quick service restaurant company. It develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various priced food items. The company operates various restaurant brands, including KFC, Pizza Hut, Taco Bell, Long John Silvers, or A&W All-American Food Restaurants

america loves food, and i can't imagine what it would be like without theese restaurants, if they go under i will have to change my diet.

trading at 21x earnings, 3.04eps, steadily increasing income year in and year out, picking up some liablities but i dont see that as being to big of a threat right now.

LogicalBalatro (41.20) Submitted: 8/6/2008 11:48:40 AM : Start Price: $36.37 YUM Score: +9.18

A little rundown: I would bet pretty much everyone in the developed or developing world likes either Pizza, Fried Chicken or Tacos and all three are staples of YUM! Brands. With strong brands in Pizza Hut, KFC and Taco Bell (And smaller chains A&W and Long John Silvers), YUM looks poised to have great returns over the next few years. As the market gets better, restaurants will make more money. But for YUM, that's only the sugar on top because their cheap eats joints are already popular with a hurting American market that wants quick, cheap food.

Combine that with extraordinary placement and growth prospects in China, especially with KFC which they apparently love, I like YUM as one of the best food service companies out there. They raised their Year EPS growth forecast, they have increasing operating profit and revenues and increased their dividends consistently. Dig In!

kahunacfa (< 20) Submitted: 2/13/2008 10:50:55 AM : Start Price: $33.70 YUM Score: +20.70

Yum Brands is a collection of Fast Food concepts: TacoBell, Kuntucky Fried Chicken(KFC) not too bad if you do not mind your "fried" chicken parboiled first, and others.

The basic concept Fast Food of OK quality, at a popular price. Now to me a popular price is Free; this is not it.

The shares are slightly undervalued at $35 and change. I compute an Intrinsic Value of $42-$44 per share. There is some Recession resistance as consumers avoid eating out because of the Recessiion, balanced by other consumers trading down from a sit-down served concept. Also of interest is the company's plan to expand is the former Soviet Union, India, and China.

Conclusion: BUY at $35 hold until the low forty range, or longer as long as the numbers continue to be there. Earnings estimate 2008 about $1.85. P/E about 19.1 on my estimate. Upside surprise possible from faster Interntional expansion that I expect and perhaps declining commidity prices in a US Recession.

Conclusion: BUY at $35 3/8 - price objective $42.5 objective.

Kahuna,CFA

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