Yum! Brands: Good Dividend Growth, But With a Side Helping of Debt

Yum! Brands Inc. (NYSE: YUM) is the world’s largest quick service restaurant company, with more than 37,000 units in more than 110 countries and territories. YUM’s portfolio includes 5 brand concepts: KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W All-American Food Restaurants (A&W). Sales, Earnings, Free Cash Flow Yum! Brands has a similar business structure to McDonald's (MCD). The company owns and operates some restaurants, while independent franchisees own and operate the rest. This is a great business model, as it allows Yum! to attain predictable cash flow without much capital investment or operations management. Years Revenue (in millions) 2006 9,561 2007 10,435 2008 11,304 2009 10,836 2010 11,343 Sales have grown by an average of 5.5% over the past decade, and increased 4.6% this past year. 17% of sales growth was driven by China, where Yum! is focusing much of its energy. Out of the 1,391 new... Read more