The hedge fund said that it now holds a "significant" stake in Yum! Brands, though it didn't disclose the exact size of the stake, according to Reuters. Third Point said that Yum! Brands recently "turned the page on recent trouble in its Chinese business," and that it expects a dramatic profit recovery in the next one to two years.
Yum! Brands is based in Louisville, KY and owns and operates the KFC, Pizza Hut, Taco Bell, and WingStreet fast food chains.
About 3.7 million shares of Yum! Brands were traded by 9:58 a.m. after Third Point disclosed its stake, compared to the company's average trading volume of about 3.8 million shares a day.
TheStreet Ratings team rates YUM BRANDS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate YUM BRANDS INC (YUM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins 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."