Yum! Brands (YUM)

Quick serve restaurant. Brands are KFC, Taco Bell, and Pizza Hut. They are international and this is where sales growth is. The company is well positioned to grow globally. China is about 25% of their revenues. (Analysts’ price target is $88.78)

It is a great company, but for him it is too expensive at 5.7 times sales. He prefers Chipotle (CHP-N) at 2.5 times sales.

Bad headline news about Tim Horton's franchisees doesn't help QSR-T. She'd buy Yum! Brands (KFC, Pizza Hut) instead because of its presence in China and now India.

A wonderful restaurant company with a number of great brands, but too pricey for him. All these fast food companies are very dependent on margins. Commodity prices have been low, but could easily spike up with any kind of inflationary scare. There is very strong employment data, but with any kind of set back, that will discourage people from going out to eat.

They are so well diversified. Mexico is such a small portion of their overall revenues that a boycott by Mexicans would not be that effective. It would be more of a headline risk and would be a buying opportunity.

Spun off their China division, so now her clients own both names. Going forward, she thinks China is a very attractive long-term secular growth story for the emerging consumer there. The North American portion is going to increase their franchising of all their different brands. That is going to alleviate a lot of capital requirements. She anticipates that if they increase their franchising component, they will effectively generate a lot more cash flow. She is happy to hold both divisions.

Yum! brands is a company with three major franchises It has become a China story. They have had trouble with food quality issues in China and have decided to spin it off and treat it as a royalty situation. It is expensive and cloudy. He would pass.

(Market Call Minute.)

People globally likes this company. It is real big in China, and in his opinion everything relies on the growth in China. Stock has bounced in the last few months with the overall market, but he would be selling into the rally. Prefers others.

She had initially bought this because of its exposure to China, which is a very strong secular growth area for fast food and quick serve restaurants. They’ve had some issues with supplier problems and the competitive nature in China. Feels this has largely been resolved. They will be spinning off Yum China. Executing quite well in the US.

(Market Call Minute.) In the process of spinning off their Chinese operations. A lot of moving parts, and not a cheap stock.

Owner of Taco Bell, KFC and Pizza Hut. They are spinning off their problematic side of the business, which is China. Spinning out their China same-store sales story which was declining, and now it is going to be concentrated on its US side. He would say thumbs-up to this.

This has been a very strong consumer stock. Chart shows a spike early this year on top of a upward trend line, and the stock broke down below the trend line this year. It could be that the growth story might be over for this, so he would be very careful.

Has buying this for new accounts. It is now being spun off from the US company. Thinks this could be a heck of an interesting play in China. His bias is towards it because if China becomes a more consumer oriented society, and the middle class is being built up, this is good for all fast foods and restaurants.