On valuation, analysts at BofA see earnings rising at a solid pace through 2025. The Louisville-based restaurants industry company within the Consumer Discretionary sector trades at a high 30.2 trailing 12-month GAAP price-to-earnings ratio and pays a small 1.1% dividend yield, according to The Wall Street Journal. Key risks include of course China, but also higher domestic labor costs and stiffer competition across all geographic areas.
Still, consistency from Taco Bell and slightly better comps out of KFC and Pizza Hut should help to grow non-US growth in the quarters ahead. What's more, as the China reopening sputters, there are key risks to this discretionary stock with its heavy presence in that region. Comps were decent, but performance relative to pre-COVID levels was not as sanguine. Core operating margins verified at 11% with a one percentage point headwind stemming from weakness in Russia. A significant portion of operating profits are derived internationally, with a growing contribution from emerging markets, including a heavy presence in China.īack in early May, the firm reported an operating earnings miss while GAAP profits grew by a modest 3% year-on-year. S&P 500 Forward P/E Multiples: Expensive Restaurant StocksĪccording to Bank of America Global Research, YUM, whose brands include KFC, Pizza Hut, and Taco Bell, is one of the largest restaurant operators in the world with about 55,000 stores in more than 120 countries. I have a hold rating when piecing everything together on Yum! Brands ( NYSE: YUM). Those high P/Es are sometimes warranted given consistent and robust EPS growth trends and a resilient consumer. But it is within the consumer space where some unusually pricey equities are seen. Look around the market, and you'll find some high valuations in tech land.
0 kommentar(er)
