Yum Brands Inc (YUM): Leisure's Featured Underperformer Of The Day

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 0.3%. By the end of trading, Yum Brands fell $1.02 (-1.4%) to $70.15 on average volume. Throughout the day, 5.5 million shares of Yum Brands exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $69.43-$70.92 after having opened the day at $70.83 as compared to the previous trading day's close of $71.17. Other companies within the Leisure industry that declined today were: Pizza Inn Holdings ( PZZI), down 9.8%, Chanticleer Holdings ( HOTR), down 9%, Premier Exhibitions ( PRXI), down 6.5%, and Nevada Gold & Casinos ( UWN), down 6.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $32.43 billion and is part of the services sector. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Yum Brands a buy, one analyst rates it a sell, and 11 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 and increase in stock price during the past year. 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 positive front, Good Times Restaurants ( GTIM), up 5.2%, Morgans Hotel Group Company ( MHGC), up 3.9%, Starbucks Corporation ( SBUX), up 2.4%, and Expedia ( EXPE), up 2.3%, were all gainers within the leisure industry with McDonald's Corporation ( MCD) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.