Burger King Worldwide Inc (BKW), McDonald’s Corporation (MCD), Yum! Brands, Inc. (YUM): This Stock Deserves a Place in Your Portfolio

McDonald’s is trying to perk up its sales in China which were affected by avian flu. The company is diversifying its menu beyond chicken and intensifying its marketing initiatives that focus on better quality and safety of its products.

McDonald’s has also billed a budget of $3 billion to complement its plan of opening 1,200 to 1,300 new restaurants around the world. This resonates with the company’s need of luring more customers and expanding its global base.

Yum! Brands, Inc. (NYSE:YUM)

Yum! Brands, Inc. (NYSE:YUM) hopes of boosting its margins were brutally damaged by the spread of avian flu. A drastic drop of 16% in the earnings annoyed the shareholders but, with time, the widespread media surrounding avian flu has subsided and the sales are gradually increasing.

In order to rise above these intricacies, the company intensified its advertising initiatives, assuring good quality of food being served in the restaurants. Apart from that, to compensate for the loss in the previous quarter, Yum! Brands is looking to set-up 700 new KFC outlets in China.

Globally, the company is stern on its objective to expand its fan-base and is looking to open 125 Pizza Hut restaurants in U.S.A. by the end of fiscal year 2013. The company is hopeful that these implementations will enable it to add to its sales and make up for losses of the previous quarter.

Ultimate summary

Bearing in mind that Burger King will soon be transformed into a fully-franchised model, I believe it will yield a good value in the future. Reduction in operating costs will continue to benefit the company’s bottom-line, whereas I expect the expansion is Pakistan to reap fruits.

The article This Stock Deserves a Place in Your Portfolio originally appeared on Fool.com and is written by Ayush Singh.

Ayush Singh has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald’s. The Motley Fool owns shares of McDonald’s. Ayush is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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