Last Updated: 09 Nov 2024
Executive Summary
Yum! Brands Inc. (YUM) is a leading global fast food corporation with a market capitalization of $38.29 billion. The company operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China. YUM has a strong financial position with an EBITDA of $2.64 billion and a profit margin of 21.1%. The company is expected to continue growing in the future, driven by its strong brand portfolio and international expansion.
Company Overview
Yum! Brands was founded in 1997 and is headquartered in Louisville, Kentucky. The company has over 50,000 restaurants in over 150 countries. YUM's brands are some of the most recognizable in the world, and the company has a strong track record of innovation and growth.
Fundamental Analysis
YUM's financial performance has been strong in recent years. The company's revenue has grown by 5.3% over the past year, and its EPS has grown by 10.2%. YUM's profit margin has also improved over the past year, from 19.9% to 21.1%. The company's balance sheet is also strong, with $2.5 billion in cash and equivalents and $4.5 billion in debt.
Technical Analysis
YUM's stock price has been trading in a range between $121.87 and $141.79 over the past year. The stock is currently trading at $137.21, which is near the top of its range. The stock's technical indicators are mixed, with the RSI indicator showing that the stock is overbought and the MACD indicator showing that the stock is in a bullish trend.
Short Term Outlook
YUM's stock price is expected to continue to trade in a range in the short term. The stock is overbought and could be due for a pullback. However, the stock's bullish trend is still intact, and the company's strong fundamentals should support the stock price in the long term.
Long Term Outlook
YUM's long-term outlook is positive. The company has a strong brand portfolio, a global presence, and a track record of innovation and growth. The company is expected to continue to grow in the future, driven by its international expansion and its new product launches.
Analyst Recommendations
The majority of analysts have a "Buy" rating on YUM's stock. The average analyst target price is $144.19, which is 5.1% above the current stock price.
