Yum's Group Presentation

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description

Yums stock recommendation

Transcript of Yum's Group Presentation

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Yum! Brands, Inc. is the world's largest restaurant company in terms of system units with nearly 34,000 restaurants in over 100

countries and territories and more than 1 million associates.

Yum! is ranked #213 on the Fortune 500 List and generated more than $13 billion in revenue in 2012. 

 

13 % EPS  GROWTH  

5 % WORLDWIDE  SYSTEM  SALES  GROWTH  

1.976 NEW  UNITS  OPENED  

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COMPANY ANALYSIS

ROE 80.31 % LARGE CAP

PREDICTABLE STOCK  

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INCOME STATEMENT STEP  1  :  OK    

quarterly  

annual  

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Sustainable Competitive Advantage STEP  2  :  OK    

Monopoly    :  No  Strong  brand    :  Yes  

<  >  

ROE  >  15  %  

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Positive & High Future Growth

STEP  3  :  OK    

able  to  grow  double-­‐digit  

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Conservative Debt STEP  4  :  NO    

2.932  <  4  x  4.153    

Debt/equity  raEo  <  1     Current  raEo  >  1    X   X  

OK  

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High & Consistent Return On Equity (ROE)

STEP  5  :  OK    

ROE  >  12  -­‐  15  %  

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Management is Holding/Buying Stock

STEP  6  :  OK    

Walter  Robert  D  as  director  

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Price is Below Intrinsic Value

STEP  7  :  NO    

Current  price  $  63.89  

Intrinsic  Value  $  62.82  

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LONG TREND ANALYSIS

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SHORT TREND ANALYSIS

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SHORT TREND ANALYSIS

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China  Update  

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What  David  C.  Novak,  as    Chairman  &  CEO,  said  :