Yum! Brands, Inc. Zacks Momentum Buy Stock

Yum! Brands, Inc. (YUM) just spiked into a new all-time high as the company continues to expand its international reach. With another strong quarter in the bag and estimates on the rise, this Zacks #2 Rank stock has an appetite for momentum.

Company Description

Yum! Brands, with its subsidiaries, operates as a quick service restaurant in the United States and internationally. The company's restaurants include, KFC, Taco Bell and Pizza Hut. Yum! was founded in 1997 and has a market cap of $27 billion.

YUM has been a top performer in 2011, handily beating the averages with a fresh all-time high. That movement comes on strong international growth, on display in November with strong Q3 results that came in ahead of expectations.

Third-Quarter Results

Revenue for the period was up 14% from last year to $3.27 billion. Earnings also looked good, coming in at 83 cents, one penny ahead of the Zacks Consensus Estimate.

The big story out of YUM is the company's growth in Asia, where it has been aggressively expanding its presence. Same-store sales in China were up an eye-grabbing 19%.

Results on the domestic front were a little flat, with same-store sales down 3% from last year. The laggard of the group was Taco Bell, losing market share from stiff competition like McDonalds and Subway. That's important because Taco Bell accounts for about 60% of the company's domestic operating profit.

Estimates

We didn't see much movement in estimates off the good quarter, with the current year holding at $2.85 and the next-year estimate pegged at $3.19, a 12% growth projection.

Valuation

With a PEG ratio of 1.67, YUM trades at a premium to the benchmark of 1 for value.

12-Month Chart

On the chart, shares have been on the move since October, recently jumping into a new all-time high. Look for support from the trend on any weakness.

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