Yum Brands Inc (YUM): Today's Featured Leisure Winner

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 higher today making it today's featured leisure winner. The industry as a whole closed the day down 0.3%. By the end of trading, Yum Brands rose 94 cents (1.4%) to $66.94 on average volume. Throughout the day, 3.3 million shares of Yum Brands exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in a price between $65.92-$67.10 after having opened the day at $66.23 as compared to the previous trading day's close of $66. Other companies within the Leisure industry that increased today were: Granite City Food & Brewery ( GCFB), up 4.5%, Denny's Corporation ( DENN), up 3.8%, Dover Downs Gaming & Entertainment ( DDE), up 2.8%, and Bravo Brio Restaurant Group ( BBRG), up 2.1%.
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YUM! Brands, Inc., together with its subsidiaries, operates as a quick service restaurant company in the United States and internationally. Yum Brands has a market cap of $30.3 billion and is part of the services sector. The company has a P/E ratio of 21, above the average leisure industry P/E ratio of 20.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Yum Brands a buy, no analysts rate it a sell, and six 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 revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Frisch's Restaurants ( FRS), down 5%, Pizza Inn Holdings ( PZZI), down 4.8%, Town Sports International Holdings ( CLUB), down 3.8%, and Chuy's Holdings ( CHUY), down 3.7%, were all laggards within the leisure industry with Expedia ( EXPE) being today's leisure industry laggard.

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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