Yum! Brands (YUM)

Yum has the dominant QSR position in China and is growing at a rate much faster than its closest rival, McDonalds. In the Q4 2008, Yum's same-store sales in China rose 18%, while overall profit jumped 18%^[1].

The economic recession has put a pinch on consumers' pockets. Fast food restaurants like Burger King that offer value meals and low cost menu items stand to benefit from this value-seeking behavior. Sales rose 7% in FY2008, and the projected long-lasting duration of the global economic recession will likely drive this number higher.

The success of Yum's International division may be augmented by its expansion into continental Europe, Russia, and India.

The success of Yum's International division may be augmented by its expansion into continental Europe, Russia, and India.

Yum's KFC, Pizza Hut, Taco Bell, and Long John Silvers restaurant brands are all the leading market share holders in their respective QSR categories.

The Key ranking for Yum was reduced from 2 Key Considerable to 3 Key Moderate on Thursday, April 2 2009. Key rankings look at numerous factors related to company stocks. It is intended as a guide for investors interested in investing in this underlying stock.