- Yum! Brands is up 15% year-to-date, outperforming its benchmark by 500 basis points despite inflationary pressures and staffing headwinds that have rocked the sector.
- The company reported solid Q3 results from a development standpoint with 760 net new units, and saw positive comps across the board on both a 1-year and 2-year basis.
- However, while it's been a decent year for the company and recent acquisitions should pay off nicely, Yum currently trades slightly above its historical earnings multiple of 24.
- So, while I think this is a name to keep an eye on if the market turbulence continues, I believe there are more attractive bets elsewhere in the market currently.
For further details see:
Yum Brands: Limited Margin Of Safety At Current Levels