Yum! Brands (YUM)

Now is a good entry point. They own KFC, Taco Bell and Pizza Hut, which are well-represented in China and emerging markets. A third of KFC's revenues come from China. Taco Bell is strong in the US, and will expand internationally. Pizza Hut is the laggard in America where pizza is competitive; are closing some PH locations. They just bought Habit Restaurants, a small California burger chain, which is another branch that YUM can grow. Prefers this to QSR.

They own Yum! Brands in this space rather than McDonalds. One of the issues is that traffic into stores has been slowing in US locations. Arguably, growth with come in other emerging markets.

Quick serve restaurant. Brands are KFC, Taco Bell, and Pizza Hut. They are international and this is where sales growth is. The company is well positioned to grow globally. China is about 25% of their revenues. (Analysts’ price target is $88.78)

It is a great company, but for him it is too expensive at 5.7 times sales. He prefers Chipotle (CHP-N) at 2.5 times sales.

Bad headline news about Tim Horton's franchisees doesn't help QSR-T. She'd buy Yum! Brands (KFC, Pizza Hut) instead because of its presence in China and now India.

A wonderful restaurant company with a number of great brands, but too pricey for him. All these fast food companies are very dependent on margins. Commodity prices have been low, but could easily spike up with any kind of inflationary scare. There is very strong employment data, but with any kind of set back, that will discourage people from going out to eat.

They are so well diversified. Mexico is such a small portion of their overall revenues that a boycott by Mexicans would not be that effective. It would be more of a headline risk and would be a buying opportunity.

Spun off their China division, so now her clients own both names. Going forward, she thinks China is a very attractive long-term secular growth story for the emerging consumer there. The North American portion is going to increase their franchising of all their different brands. That is going to alleviate a lot of capital requirements. She anticipates that if they increase their franchising component, they will effectively generate a lot more cash flow. She is happy to hold both divisions.

Yum! brands is a company with three major franchises It has become a China story. They have had trouble with food quality issues in China and have decided to spin it off and treat it as a royalty situation. It is expensive and cloudy. He would pass.

(Market Call Minute.)

People globally likes this company. It is real big in China, and in his opinion everything relies on the growth in China. Stock has bounced in the last few months with the overall market, but he would be selling into the rally. Prefers others.

She had initially bought this because of its exposure to China, which is a very strong secular growth area for fast food and quick serve restaurants. They’ve had some issues with supplier problems and the competitive nature in China. Feels this has largely been resolved. They will be spinning off Yum China. Executing quite well in the US.