Jim Cramer Believes “A Yum Free of Pizza Hut Is a Yum That’s Going to Trade Much Higher”

Yum! Brands, Inc. (NYSE:YUM) was among  Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer discussed the possible sale of the company’s pizza business, as he said:

Got two fast food companies that are down on their luck that we all know, McDonald’s and Yum! Brands… As for Yum, yesterday we started hearing chatter that they’re in talks to sell the ne’er-do-well Pizza Hut business to an outfit called LongRange Capital. I thought this one would explode higher on the news because the remaining KFC and Taco Bell are two amazing performers. I think the love affair with tech though, is taking the stock down to well below where it should be. A Yum free of Pizza Hut is a Yum that’s going to trade much higher.

Yum! Brands, Inc. (NYSE:YUM) develops and franchises several quick-service restaurants, including well-known brands such as KFC, Taco Bell, and Pizza Hut. A caller inquired about the stock during the March 27 episode, and Cramer replied:

I think that Yum has come down to a very attractive price, $153 down from $169, 23 times earnings, excellent growth, asset light model. And right now, what’s going on in the worldwide economy does not really impact a company that offers a nice value meal.

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