YUM - Yum! Brands: Fast-Food Price Wars Could Ding The P/E Monitoring Momentum Trends
2024-06-05 14:26:16 ET
Summary
- Retail and restaurant price wars are underway, with companies like Target and Walmart cutting prices on groceries and McDonald's and Burger King offering new low-price meals.
- Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, faces challenges in China and may need to make price-cutting efforts to compete.
- But with solid EPS growth expected, its high earnings multiple is justified for now.
- I highlight key price levels on the chart to monitor ahead of earnings due out in July.
Retail price wars have commenced. At least that’s the narrative of many companies in the Consumer Discretionary sector seeking to relay relief to inflation-weary households. Just so far this quarter, we’ve heard plans from firms like Target (TGT) and Walmart (WMT) which detail price cuts on many items, primarily in groceries. ...
Yum! Brands: Fast-Food Price Wars Could Ding The P/E, Monitoring Momentum Trends