Today, Christine Poole commented about whether AC-T, CSCO-Q, BCE-T, VZ-N, NGT-T, V-N, ABT-N, TD-T, RY-T, L-T, DLTR-Q, JNJ-N, ATRL-T, HR.UN-T, AFN-T, NTR-T, GOOG-Q, BTE-T, SJR.B-T, FCR-T, MFC-T, YUM-N, ATD.B-T, META-Q are stocks to buy or sell.
It's nicely recovered, but is no longer cheap. Valuation is too high for her. She'd rather buy Alphabet. Regulatory issues will remain an overhang that'll be ongoing. They are spending more, too, which compresses their margins. Maybe buy on a pullback.
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.
101.36 The largest US dollar store. This pulled back in the last quarter of 2019; margins depressed due to tariffs and transportation costs, but these will pass. They bought Family Dollar a few years ago and had trouble intregrating it, but that's behind them them. They're introducing refrigerated foods now, and various price points which may increase sales. This now trades at a discount to peers, including Dollarama. She's continuing to buy it. Pays no dividend; a growth stock.