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Bargain #1: Yum! Brands, Inc. (YUM)
We all know that fast food has been king during this recession. Value meals have been attracting cash strapped consumers in droves,
and the headline of this trend has been McDonald’s (MCD). Its shares
have been one of the
few winners in this crisis.Riding the coattails of MCD, but as of yet not seeing any noticeable appreciation in its stock, is Yum! Brands, Inc. (YUM).
YUM is a huge player in the fast-food restaurant business. Its brands include Taco Bell, KFC and Pizza Hut.While the casual dining space has suffered during this downturn, fast food is growing. YUM stock does not reflect that growth in
my opinion. The
company is profitable, and shares trade for less than 15 times trailing earnings, but only 12 times forward earnings. Analysts
expect earnings to grow by 15% or more next year.And that’s a bargain to be exploited.
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