- Yum Brands is down 8% year-to-date, massively outperforming the S&P 500 and the restaurant industry, helped by its solid Q1 results.
- These solid Q1 results were achieved despite lockdowns in China which weighted on results, with Yum reporting 8% system-wide sales growth and record new units opened in Q1.
- From a bigger picture standpoint, it's hard to find a company better positioned to deal with the industry-wide headwinds, given Yum's focus on technology and its menu that offers value/convenience.
- After a 16% plus pullback from its highs, Yum has become more attractively valued, but I still don't see a low-risk buy point in the stock just yet, even if it is a name to keep a close eye on going forward.
For further details see:
Yum Brands: Valuation Beginning To Improve