This afternoon, at 1:30pm, we are hosting a call outlining our view on Yum! Brands. As we head into 2013, of the Big Three global restaurant companies (MCD, SBUX, YUM), we think investors should be long Yum! Brands. We have prepared a slide deck that outlines our thesis that clients can follow during the call. Topics discussed in the presentation materials include:
- Yum! Brands has a strong growth outlook, even in China where it has done business for 25+ years
- 2013 top-line outlook more positive for YUM than SBUX and MCD
- Consensus too bearish on new unit openings in China over next couple of years
- In an uncertain macro environment, YUM's diversification (units and operating income) appeals to us
- YUM China will likely be a 20% operating margin business in 2013
- High Returns on Incremental Invested Capital will continue for YUM in 2013
- We believe the stock is worth 20% more than what it is trading at today
Please contact sales@hedgeye.com for access to the call.
Howard Penney
Managing Director
Rory Green
Analyst