YUM! Brands Stock Lags Behind Competitors on Friday

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Yum! Brands ($NYSE:YUM) Inc. is one of the leading fast-food companies in the world, and its stocks have been performing well for some time. Despite the company’s strong performance in recent weeks, investors were not as receptive to Yum! The company, which owns brands such as KFC, Taco Bell, and Pizza Hut, has been focusing more on improving their customer experience in recent years. They have been increasingly investing in digital technology and delivery options, as well as expanding their menu to include healthier options.

Despite its impressive portfolio of brands and success in recent years, Yum! It is unclear why the stock failed to live up to expectations, but some analysts believe it could be due to the company missing out on a potential merger or acquisition opportunity. Despite this setback, investors remain hopeful that Yum! Brands Inc. will be able to turn things around and continue its growth trajectory.

Stock Price

BRANDS Inc. stock lagged behind its competitors on Friday, as its stock opened at $128.9 and closed at $128.5, down by 0.3% from last closing price of 128.9. This was a sharp contrast to most of its competitors, who managed to post gains on the same day. The company’s stock has been performing slightly better in recent weeks, but has yet to reach the levels seen prior to the onset of the pandemic. Analysts have pointed out that the company still faces significant headwinds in the near future, as many of its stores are yet to return to pre-pandemic operations.

Additionally, the company’s reliance on international markets poses additional risks, as it continues to grapple with the effects of the global health crisis. Despite the current situation, investors are still optimistic about YUM! BRANDS‘ long-term prospects, citing its strong portfolio of brands and focus on innovation as factors that could help to drive future growth. The company has also begun diversifying its operations to reduce its reliance on international markets, which could help to reduce risk and create more stability in the future. 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

As GoodWhale, we conducted an analysis of YUM! BRANDS‘ wellbeing. We used the Star Chart to classify YUM! BRANDS as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. This type of company may be attractive to dividend investors, as well as those interested in profitability and asset stability. BRANDS scored 8/10 in our health score, indicating a strong cashflow and debt structure that allows them to safely ride out any crisis without the risk of bankruptcy. Asset growth may be a weak point for the company, but overall, YUM! BRANDS remains a strong and safe option for investors. 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

Investors have had mixed reactions to Yum! Brands Inc. stock performance this week. On Friday, the stock saw a decline relative to competitors. Analysts attribute this dip mainly to investor sentiment shift due to the company’s low sales growth, weak earnings results, and an uncertain outlook. Despite the recent dip, Yum!

Brands Inc.’s stock still trades at a premium valuation compared to some of its peers. Long-term investors may want to focus on the company’s strong brand portfolio, diversified revenue sources, and growing presence in emerging markets. Short-term investors should consider the risk factors before investing in Yum!.