Eric Broder Van Dyke
Funny how time slips by and yet, some things never change.
It’s been four months since my last write-up into Yum! Brands (NYSE:YUM), one of the titans of the limited-service space—and sure
Yum! Brands: Taco Bell Keeps Cooking, But The Stock Is Already Fully Baked
Summary
- Taco Bell and KFC International remain Yum! Brands, Inc.'s primary growth engines, with strong same-store sales and international expansion driving operating profit.
- Despite new scalable concepts like Live Más Café and Saucy by KFC showing promise, Pizza Hut continues to underperform and drag on overall results.
- Valuation remains stretched, with the stock trading at a premium P/E and EV/EBIT multiple, offering little upside from current levels.
- I reiterate my Hold rating for YUM, setting a $140–$141 price target, expecting mid-single-digit total returns driven by dividends and modest buybacks.
Stock analyst, writer (praxeology & Mengerian Theory), accountant, and founder of Goulart Restaurant Stocks—serving up fresh, flavorful investment insights. I also cover casinos and gaming, food companies, consumer discretionary stocks, and IPOs, with a keen eye for hidden gems in micro and small caps.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.