YUM! Brands Relies On Franchising Amid Increased Expenses
Zacks Investment Research | Jul 08, 2019 08:03AM ET
YUM! Brands, Inc. (NYSE:YUM) continues to rely on its transformation plan to drive growth. The company increasingly focuses on various digital initiatives and refranchising efforts to drive its top and bottom lines. However, its de-risking strategies are weighing on near-term revenues, which pose concerns. Also, soft revenues at Pizza Hut and high costs are potential headwinds.
Nevertheless, by relying extensively on the four key drivers of growth — distinctive, relevant and easy brands; unmatched franchise operating capability; bold restaurant developments; and unrivaled culture and talent — the company remains on track to achieve long-term target.
Shares of YUM! Brands have gained 39.2% over the past year, outperforming the Zacks Investment Research
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