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YUM! Is Far From Appetizing

NEW YORK ( TheStreet) -- There are a lot of lessons to be learned from the craziness going on in the market right now. We're going to take a look at the facts as they present themselves at the current moment.

We are finally starting to see some of the leading stocks begin to roll over a bit as are now in earnings season.

Last week was the start of earnings season. Several big companies reported earnings: Alcoa (AA), YUM! Brands (YUM - Get Report), JPMorgan Chase (JPM) and Wells Fargo (WFC) were the biggest ones.

So I thought this would be a good time to analyze the company that deals with the four food groups here in America: fried chicken, pizza, root beer and tacos -- don't tell me you never eat this stuff! We're talking about YUM!, the owner of KFC, Pizza Hut, Taco Bell, Long John Silver, A&W, etc.

Data from Best Stocks Now App

Analysts were expecting this quarter's earnings to be 93 cents per share on the stock. Well, YUM! reported last week and they fell short. Am I surprised? No, and here's why.

My "Best Stocks Now" app requires that a stock first is a superior performer in the long term, intermediate term and short term. No laggards allowed!

Second, the stock must makes sense from a valuation point of view. In other words, there has to be justification for the stock going considerably higher over the next three to five years, no exceptions.

Third, a stock has to have a healthy, vibrant stock chart. None of this sideways or sloping downward business (this is why I never bought Apple (AAPL) all the way down from $705 down to $385).

Now let's look at the analysis I did of YUM! Brands recently before it reported earnings last week, so you can see why I am not surprised that YUM fell short.

Data from Best Stocks Now App

Performance: How has the stock performed over the years? Well, not too bad; YUM! happens to be one of the better-run franchises around. Over the past 10 years YUM! has been doubling your money about every four years. That's an average of almost 18% returns -- this is pretty good.

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SYM TRADE IT LAST %CHG
YUM $90.98 -1.00%
AAPL $128.31 -0.50%
FB $78.80 -0.24%
GOOG $538.31 0.08%
TSLA $238.70 5.60%

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