Stockchase Opinions

Christine Poole Yum! Brands YUM-N HOLD Jun 24, 2020

She still owns YUM. Their brand are Pizza Hut, Taco Bell and KFC. In China, they have a large presence -- it represents about 30% of their revenues. Since most locations focused on drive-thru they are doing okay. There is still good growth opportunities overseas and they are looking into India to expand.
$86.230

Stock price when the opinion was issued

food services
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DON'T BUY
It's a buy under $100, so don't buy it now at $105. Restaurants are going down during lockdowns this winter.
BUY
That the ongoing legalization in cannabis in the U.S. will push munchies stocks like YUM. Likes it very much. Better if they fix their Pizza Hut issues. Great to own.
COMMENT
Has held it for many years. Recently sold it to make room for one of her top picks. A well-regarded quick serve company. The Chinese spinout has done better than the Yum! Brands that trades in New York. Saw better opportunities elsewhere.
BUY
They delivered this morning a huge EPS beat, beat revenues and 9% same-store sales growth, but the stock hardly budged. One reason was that management didn't issue guidance, because the environment is unpredictable, but also the stock has recently run up. Yum includes chains KFC and Pizza Hut.
COMMENT
They report Wednesday. Chipotle just reported a good quarter and the market didn't care--warning. Chipotle owns all its stores, but Yum is heavily franchised. Will Yum have the same success finding workers as Chipotle?
BUY
They plan to double locations from 54,000 globally over time. They're doing really well. Owns KFC and other fast-food chains.
BUY

It reports Wednesday. Listen for comments about sticker prices being too high. Overall, he feels YUM will do well because of KFC, Taco Bell and Pizza Hut.

BUY

They report Wednesday. He expects an upside surprise.

PARTIAL BUY

It reports Wednesday. The franchise market has been very good to KFC and Taco Bell, but not Pizza Hut. Shares are firing hot with two hot brands, but suppose they add a third?

BUY
a dividend aristocrat

They raised their dividend by 10.7%. They had a disappointing Q4, but raised their full-year forecast, a strong one. International headwinds should improve this year.