The market, unfortunately, agrees. Despite the major drop in Chinese business, the stock didn’t pull back at all. At 18 times forward earnings, Yum! isn’t cheap. McDonald’s Corporation (NYSE:MCD), which is facing much stronger headwinds currently, is at 16 times earnings. Burger King Worldwide Inc (NYSE:BKW), which just crushed earnings estimates and is growing like a weed, trades at 19 times earnings. Investors may want to wait for a possible pullback in the coming quarter to hit a more attractive entry price into Yum! Brands, Inc. (NYSE:YUM).
The article Yum! Powers Through China Struggle originally appeared on Fool.com.
Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide. It recommends and owns shares of McDonald’s.
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