Yum! Brands, Inc. (YUM), McDonald’s Corporation (MCD), Chipotle Mexican Grill, Inc. (CMG): Will This Company Continue to See Good Times?

This will be welcome news for Yum!. Taco Bell’s offerings of burritos and innovative items such as its Doritos Locos Tacos at much cheaper prices are believed to be eating into Chipotle’s market share. Taco bell’s burritos are not only cheaper than the ones Chipotle sells for around $7 each, they apparently also taste similar.

According to a survey by David Einhorn’s hedge fund, 75% of Chipotle’s customers frequent Taco Bell. Brand loyalty clearly isn’t going to save Chipotle Mexican Grill, Inc. (NYSE:CMG) in this rat race. Chipotle, known for its upscale ambience and richer clientele, may soon have to consider a price slash if it wants to maintain its market share in Mexican food.

From here on

Yum! did not do too badly in the previous quarter. In fact, it managed to beat analysts’ earnings estimates by $0.15 per share. It also is a relatively cheap buy as compared to Chipotle Mexican Grill, Inc. (NYSE:CMG). However, Yum! Brands, Inc. (NYSE:YUM)’s growth in the next few quarters looks a tad uncertain, to say the least. Until the company regains its foothold in China, which accounts for approximately 40% of KFC’s profits, I would like to remain on the sidelines. The best bet would be to wait until the company’s growth picks up, and then go long.

The article Will This Company Continue to See Good Times? originally appeared on Fool.com.

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