Is Yum! Brands Stock a Buy?
Yum! Brands (NYSE: YUM), the delicious-sounding parent company of quick service restaurant chains Kentucky Fried Chicken, Pizza Hut, Taco Bell, and Habit Burger Grill, was sailing along as 2020 began. It had successfully transitioned to a pure franchise model and turned around the KFC business. Overall, its various banners generated more than $50 billion in system-wide sales and opened their 50,000th store in 2019.
Then, the coronavirus pandemic hit, and like all restaurant operators, Yum! Brands was challenged to adapt with some drastic measures. The latest quarterly results show the company is on track to meet that challenge and possibly emerge from the COVID-19 crisis as an even stronger company.
Adjusting to a new reality of touchless service and delivery hasn't been easy, and customers have been skittish. When the company reported second-quarter results on July 30, it revealed sales declines for all three of its major brands.
Source Fool.com
