Yum! Brands, Inc. ($YUM) Confident Investor Rating: Poor
| Company name | Yum! Brands, Inc. |
| Stock ticker | YUM |
| Live stock price | [stckqut]YUM[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Poor |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Poor |
| Target stock price (TWCA growth scenario) | $59.1 |
| Target stock price (averages with growth) | $69.35 |
| Target stock price (averages with no growth) | $57.62 |
| Target stock price (manual assumptions) | $76.16 |
The following company description is from Google Finance: http://www.google.com/finance?q=yum
YUM! Brands, Inc. (YUM) is a quick service restaurant company based on number of system units, with over 39,000 units in more than 125 countries and territories. The Company, through three concepts of KFC, Pizza Hut and Taco Bell (Concepts) develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of priced food items. The Company operates in six segments: YUM Restaurants China (China or China Division), YUM Restaurants International (YRI or International Division), Taco Bell U.S., KFC U.S., Pizza Hut U.S. and YUM Restaurants India (India or India Division). The China Division includes mainland China, and the India Division includes India, Bangladesh, Mauritius, Nepal and Sri Lanka. YRI includes the remainder of its international operations.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Yum! Brands, Inc. I have removed this company from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Yum! Brands, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $74.77
Growth: 0.11
Current EPS (TTM): $2.51
P/E: 29
Future EPS Calc: $4.22
Future Stock Price Calc: $122.65
Target stock price: $76.15
I hope that this makes you a better investor. [/s2If]