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

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 up 0.9%. By the end of trading, Yum Brands fell $1.05 (-1.4%) to $72.47 on average volume. Throughout the day, 3,766,046 shares of Yum Brands exchanged hands as compared to its average daily volume of 3,734,100 shares. The stock ranged in price between $72.20-$73.89 after having opened the day at $73.40 as compared to the previous trading day's close of $73.52. Other companies within the Leisure industry that declined today were: Del Frisco's Restaurant Group ( DFRG), down 2.7%, Chanticleer Holdings ( HOTR), down 1.9%, Orient-Express Hotels ( OEH), down 1.8% and Country Style Cooking Restaurant Chain ( CCSC), down 1.8%.
  • 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 $32.0 billion and is part of the services sector. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Friday. Currently there are 9 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, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Cosi ( COSI), down 9.5%, Flanigan's ( BDL), down 8.4%, Chuy's Holdings ( CHUY), down 6.2% and Good Times Restaurants ( GTIM), down 5.3% , were all gainers within the leisure industry with Wynn Resorts ( WYNN) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Pizza Hut to Deliver 15 Degrees Hotter Pizza on National Pepperoni Pizza Day

Taco Bell Opening 300 Locations That Have No Drive-Thru But Sell Lots of Alcohol

Equifax CEO and Board Are Pretty Cozy

Alibaba Gets in On Apple's Facial Recognition Thing

Walmart, Starbucks Respond to Hurricanes the Best -- Others? Not So Much