This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yum Brands Not a Main Course Yet

Now this looks a lot better because we didn't compare YUM to CMG. When we see the trailing 12-month revenue per share history line we learn how important it will be for YUM to not only exceed analysts' expectations but to also guide for higher future sales and revenue. The fate of the share price depends on this, so be listening to the conference call and the comments by YUM's key officers.

Analysts and investors are concerned about the company's future sales in China, which account for about half of total sales worldwide. One report says the company has already warned that same-store sales in China had dropped 13% in March, and that will be reflected in Tuesday's quarterly report.

Ending on a positive note, Taco Bell has capitalized on the popularity of Doritos-brand snack chips by introducing an innovation of its popular Doritos Locos Tacos in a cool ranch flavor. If you like YUM's Pizza Hut side of the business, you'll be happy to know they've introduced pizza "sliders," which anecdotally I've learned are growing in popularity.

Recently, I saw another mouthwatering commercial offering boneless fried chicken at none other than KFC. The media blitz of commercials and the new menu items may take time to pay off for YUM, so investors may have to wait until later in 2013 to cash in on gains in YUM shares. If the price moves closer to $60 and I see more insider buying (or dividend increases), I will consider being a YUM investor.

At the time of publication, the author was not long any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CMG $643.75 0.98%
YUM $86.61 -0.56%
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs