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One theme we will be highlighting on Thursday’s call is Return on Incremental Invested Capital.  Yum! Brands has proven itself reliable when it comes to generating returns.

Setting Expectations

YUM’s management team is set to present at the company’s annual Investor & Analyst Conference in New York on December 6th.  Our conference call with clients, on November 29th, will outline our thoughts on the outlook for 2013 and what we expect management to focus on the following week. Please contact for access to our call on Thursday, November 29th, at 1:30pm.


Diversifying Growth

We expect the company to emphasize YUM’s increasing geographic diversification during the Investor & Analyst Conference.  The case will be made that increasing the deployment of capital to emerging markets within the YRI division will generate higher incremental returns on capital than the overall enterprise currently produces. 

We believe that ROIIC (chart below) is an important metric for restaurant companies focused on growth and expect YUM’s strong share price performance to continue throughout 2013. 

YUM CALL PREVIEW - yum roiic

Howard Penney

Managing Director

Rory Green