Top 79%
If they have a drive through then I might consider buying!
Started Apr 22 at 12:59 ET (By spookytoes)
Symbols: YUM
With the state of the economy the way it is, it seems discretionary income formerly devoted to dining out is being eroded away.( DUH!) I am sticking with the axiom that diners that normally would go to a DRI( Darden) locale will end up at a 'fast food' place. ( MCD,YUM...)Hence my statement regarding drive-thrus.
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Top 98%
ramigabai
Apr 22 at 4:30 ET
I think MCD and YUM have relatively high ratio of cash vs debt and high PE. MCD has slight better margin profit though.
Besides the expected growth in sales is too low - so I don't really think they are about to show high returns.
What return do you expect in next 6 months?
Top 1%
guliamo
Apr 23 at 6:38 ET
I don't see why anyone would invest in the junk food business... yeah, the Chinese are buying pizza and all that but if there isn't a real seal here, I would invest my money in a more solid sector with strong growth futures. I agree with spooky that YUM isn't interesting at all... Even if they are the biggest US food chain in China... so what? I rather buy basic material companies, no doubt.
Top 79%
spookytoes
Apr 23 at 11:57 ET
Actually, I agree. Need to stick with the basics but what exactly is recession proof anymore?