Yum Brands Inc (YUM): Today's Featured Leisure Laggard - TheStreet

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Yum Brands

(

YUM

) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Yum Brands fell $0.88 (-1.3%) to $68.10 on average volume. Throughout the day, 3,281,255 shares of Yum Brands exchanged hands as compared to its average daily volume of 3,616,400 shares. The stock ranged in price between $67.06-$68.56 after having opened the day at $68.06 as compared to the previous trading day's close of $68.98. Other companies within the Leisure industry that declined today were:

Premier Exhibitions

(

PRXI

), down 8.1%,

MTR Gaming Group

(

MNTG

), down 7.8%,

Renren

(

RENN

), down 6.4% and

Jamba

(

JMBA

), down 5.8%.

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YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. Yum Brands has a market cap of $31.2 billion and is part of the services sector. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Yum Brands a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates

Yum Brands

as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front,

Diversified Restaurant Holdings

(

BAGR

), down 4.0%,

Chuy's Holdings

(

CHUY

), down 2.1%,

Morgans Hotel Group Company

(

MHGC

), down 1.9% and

Empire Resorts

(

NYNY

), down 1.6% , were all gainers within the leisure industry with

Penn National Gaming

(

PENN

) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider

PowerShares Dynamic Leisure&Entert

(

PEJ

) while those bearish on the leisure industry could consider

ProShares Ultra Sht Consumer Services

(

SCC

).

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