This Day On The Street
Continue to site
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 Wants to Give Its Shares Muscle With New Protein Menu

NEW YORK (TheStreet) – Yum! Brands (YUM - Get Report) knows the definition of good eating.

The company whose restaurants include KFC, Pizza Hut and Taco Bell, among others, has fed Americans for many decades. But it's been the stock that has done most of the feeding lately, satisfying investors' appetites for profits.

Over the past eight months, shares are up almost 30%. With the stock closing Monday at $83.29, Yum! has provided year-to-date gains of over 10% compared to the industry's 3.27% gain.

>>Life Is a Box of Chocolates for Russell Stover on Lindt Buyout

>>Boston Market CEO: Fast Casual Dining Growing With Jobs, Economy

With the company's new restaurant initiatives that focuses on healthy doses of protein, investors may need to make room for their future cash as they fill their bellies. There are no signs that Yum! plans to slow down, which is not good news for Chipotle Mexican Grill (CMG).

Never shy about menu tinkering, Yum! said it will introduce a Cantina Power Menu beginning Thursday at its Taco Bell restaurants. It's only been a couple of months since Taco Bell began serving breakfast. After its trial run of the menu last year, offering chicken and steak burrito bowls proved to be successful. Bringing it nationwide was a logical next step.

The way I see it, this new protein menu is really being introduced for two reasons. First and most obvious, Yum! wants to capitalize on the popularity of all-things protein. The second reason and perhaps most tactical, it's a not-so subtle attack on Chipotle's strong grip on protein.

Chipotle, which has been credited with perfecting this restaurant concept, has demonstrated that this model can work. Offering a wide range on menu items using only a small list of ingredients has delivered strong operational results. Panera Bread (PNRA) has attempted a similar model only to yield mixed results.

For Yum!, which has a strong global reach and more pricing power than Chipotle, it's not a matter of "if" its protein menu will work. The company already has a strong grasp on what its customers want. The question is, how much profit should investors expect and to what extent it can damage Chipotle?

1 of 2

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YUM $80.97 1.77%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs