Yum! Brands Stock Declines Monday, Lags Behind Market Performance

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Monday saw Yum! ($NYSE:YUM) It is one of the largest restaurant companies in the world, with several well-known brands such as KFC, Pizza Hut, and Taco Bell. Monday’s performance was a stark contrast to the market performance. This poor performance has caused some investors to question the company’s future success.

Brands Inc. is well-positioned to benefit from the growth of the fast food industry, but Monday’s lagging performance could be an indication that it may not be able to compete as effectively as some of its competitors. Investors will be keeping a close eye on the stock in the coming days to see if it can find its footing and return to market-beating performance.

Stock Price

Monday saw a decline in stock price for Yum! Opening the trading day at $126.0, YUM closed the day at $124.4, down 1.0% from the previous closing price of $125.6. This occurred despite a positive performance from the broader market, suggesting that investors were pessimistic about YUM’s potential during the current period. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Yum! Brands. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Yum! Brands. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Yum! Brands. More…

Key Ratios Snapshot

Some of the financial key ratios for Yum! Brands are shown below. More…

Analysis

At GoodWhale, we have conducted a thorough analysis of YUM! BRANDS‘ financials. Our Star Chart shows that YUM! BRANDS is classified as ‘rhino’, which indicates that the company has achieved moderate revenue or earnings growth. With a high health score of 8/10 with regard to its cashflows and debt, YUM! BRANDS is capable to safely ride out any crisis without the risk of bankruptcy. BRANDS is strong in dividend and profitability, but may be weak in asset and growth. These features could be attractive to income-oriented investors who prioritize dividend payments and high returns on their investment. It could also be attractive to value investors who focus on profitability and potential for long-term value appreciation. However, growth investors may not find YUM! BRANDS attractive, as the company’s growth rate may be too low to match their expectations. More…

Peers

In the fast food industry, Yum Brands Inc. has to contend with Jiumaojiu International Holdings Ltd, Yum China Holdings Inc, and Restaurant Brands International Inc. All of these companies are fighting for market share in the quick service restaurant industry. This industry is worth billions of dollars, and each company is trying to get a larger slice of the pie. Yum Brands Inc. is the largest player in the industry, but its competitors are not far behind. Jiumaojiu International Holdings Ltd is the second largest player, followed by Yum China Holdings Inc. All three of these companies are engaged in a fierce battle for market share.

– Jiumaojiu International Holdings Ltd ($SEHK:09922)

Jiumaojiu International Holdings Ltd is a leading international wine producer and retailer. The company has a market cap of 19.98B as of 2022 and a Return on Equity of 8.23%. Jiumaojiu International Holdings Ltd produces and sells premium wines under its own brands, which are sold in over 70 countries around the world. The company has a strong focus on quality, innovation and customer service, and is committed to delivering the highest levels of satisfaction to its customers.

– Yum China Holdings Inc ($NYSE:YUMC)

Yum China Holdings Inc is a leading restaurant company in China. It operates a variety of restaurant brands, including KFC, Pizza Hut, East Dawning and Little Sheep. As of December 31, 2020, Yum China had over 8,600 restaurants in more than 1,400 cities across China.

The company’s market cap is 19.64B as of 2022. Yum China’s ROE is 4.27%. The company has a strong presence in China and is well-positioned to continue growing in the country.

– Restaurant Brands International Inc ($TSX:QSR)

Restaurant Brands International Inc is a holding company that operates and franchises quick service restaurants. As of 2022, the company had a market capitalization of 23.36 billion and a return on equity of 52.84%. The company operates through three segments: Burger King, Tim Hortons, and Popeyes. Burger King is the company’s largest segment, accounting for about 60% of total revenue. Tim Hortons is the company’s second-largest segment, accounting for about 30% of total revenue. Popeyes is the company’s smallest segment, accounting for about 10% of total revenue.

Summary

Yum! Brands Inc.’s stock price fell on Monday, underperforming the broader market. Investors appeared to be cautious amid the company’s declining revenues and profits. Brands’ global presence, the company’s recent performance has not met investor expectations. Analysts are concerned that the company’s strategy of relying heavily on a small handful of core brands may be limiting its growth potential.

Investors will be looking for signs of a turnaround in upcoming earnings reports, as well as a shift to a more diversified business model. In the meantime, many are choosing to limit their exposure to Yum! Brands in their portfolios.