YUM’s stock has seen an 8.7% increase year-to-date, indicating strong performance in the competitive fast-food industry.
The company is showing signs of a bullish movement, supported by its position relative to its 126-day moving average and an upgrade from Goldman Sachs.
Key financial metrics such as the price-to-earnings (P/E) ratio of 28.41 and earnings yield of 3.52% provide insight into YUM’s market valuation and investment potential.
Yum! Brands Inc (NYSE:YUM) is a global fast-food giant, known for its popular chains like KFC, Taco Bell, and Pizza Hut. The company operates in the competitive fast-food industry, where it competes with other major players like McDonald’s and Burger King. Recently, Mezvinsky Scott, CEO of the KFC Division, sold 268 shares of YUM at $145.97 each, retaining 1,755 shares.
YUM’s stock is currently trading at $145.07, reflecting a 0.8% increase. The stock has gained 8.7% year-to-date, showing strong performance despite facing resistance at the 20-day moving average. This resistance has limited today’s gains, but the stock is nearing a historically bullish trendline, which could help close the bear gap from April 4, when the stock dropped by 8.4%.
According to Schaeffer’s Senior Quantitative Analyst, Rocky White, YUM is within one standard deviation of its 126-day moving average, a level it has maintained for 80% of the last two months. This suggests a strong potential for a bullish movement, as the stock has been above this trendline in at least eight of the last ten trading days. This positive outlook is further supported by Goldman Sachs upgrading YUM’s rating from “Neutral” to “Buy.”
YUM’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 28.41, indicating how much investors are willing to pay per dollar of earnings. Its price-to-sales ratio is 5.19, reflecting the value placed on each dollar of sales. The enterprise value to sales ratio is 6.58, showing the company’s total valuation compared to its sales.
The enterprise value to operating cash flow ratio is 29.44, highlighting the relationship between YUM’s valuation and its cash flow from operations. The earnings yield is 3.52%, indicating the percentage of each dollar invested that was earned by the company. The debt-to-equity ratio is -1.46, suggesting a higher level of debt compared to equity. Lastly, the current ratio is 1.40, indicating YUM’s ability to cover short-term liabilities with short-term assets.
