For Yum! Brands (NYSE: YUM), there's more than meets the eye when it comes to its financials. Though the company in October reported a nine-month decline in total revenue of 5%, adjusted operating profit was up 7.6% year-over-year after adjusting for refranchising gains, while net income would have been up 13.6% year-over-year if volatile investment gains and losses were excluded.
The owner of the KFC and Taco Bell chains of casual dining restaurants has seen a dip in direct company sales, but this has been somewhat offset by a rise in revenue from rental and the sale of franchise rights. Yum! also owns the Pizza Hut and WingStreet brands and can offer customers a wide range of different dining options.
Here are several reasons why Yum! Brands continues to be my favorite restaurant stock.