NEW YORK (TheStreet) -- In honor of National Taco Day, CNBC's "Halftime Report" panelists and brothers Pete and Jon Najarian debated owning Yum! Brands(YUM) - Get Report stock ahead of its 2016 fiscal third quarter report, due out after Wednesday's market close.
Analysts are looking for the restaurant company that operates Taco Bell, KFC and Pizza Hut to report earnings of $1.09 per share on revenue of $3.46 billion. For the 2015 third quarter, Yum Brands posted earnings of $1 per share on revenue of $3.43 billion.
Pete, who is bullish on the stock, claimed that it's "pushing to 52-week highs" because the company is set to spin off its Yum China division under the ticker "YUMC" on the NYSE on Oct. 31.
This is a positive for Yum! Brands because there was "too much uncertainty" with the Chinese operations, he said.
"I think the uncertainty of YUMC is the problem right now and so I think that's why they're getting rid of it," Pete explained.
Additionally, both KFC and Pizza Hut had great performances in the first half of 2016 and Taco Bell is looking to expand both domestically and globally, Pete added.
Jon, who is bearish on the stock, claimed that the spin off of Yum China isn't a positive for the company because Yum Brands is already up over 23% from a year ago and now has no further catalysts set in place.
"What is the additional catalyst? They finally got what they've been asking for for years, and that is to separate or break up the company of sorts. They've done that. So now how do you get more octane, more boost out of this stock?" Jon argued.
In addition, health concerns, as well as increasing food and labor costs makes him "a little bit nervous to hold Yum Brands," Jon claimed.
Shares of Yum Brands were lower in early-afternoon trading on Tuesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Yum! Brands as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
You can view the full analysis from the report here: YUM