Yum! Brands (YUM)
Yum! Brands is the company that owns the fast-food triumvirate of Taco Bell, KFC, and Pizza Hut. The company had been telling investors for years that its main engine of growth was China, but then, in 2016, it sold off its Chinese operations. We can only assume from the fact that it has dropped into revenue and earnings stagnation that it was right all along, but how that could possibly be anything other than discouraging, I can’t imagine. One valid question is all that remains: is there reason to believe growth will start up again in the coming years? The answer is a partial yes, do mostly to the 53% of the company outside the US, for the US itself has long been a mature market where fast food restaurants are as likely to close as open. This company is really only left, therefore, with a remnant of a remnant of its future growth prospects. There’s not much to stick around here for.
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