Better Buy: McDonald's or Yum! Brands After Selling Pizza Hut for $2.7 Billion?
Key takeaways
- Brands (NYSE: YUM) just announced that it plans to sell its Pizza Hut franchise to Long Range Capital for $2.7 billion.
- One has to assume unloading a poorer-performing franchise should bode well for Yum!
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
YUM MCD NVDA Yum! Brands (NYSE: YUM) just announced that it plans to sell its Pizza Hut franchise to Long Range Capital for $2.7 billion. Investors have long known Yum! Brands as the umbrella that includes KFC, Taco Bell, and Pizza Hut. Pizza Hut's performance has generally lagged that of the other franchises, and this was likely a factor in the decision to sell it.
One has to assume unloading a poorer-performing franchise should bode well for Yum! Brands shareholders. Still, one also might wonder how it compares to McDonald's (NYSE: MCD), which has built one of the more successful fast-food enterprises in existence. Let's take a closer look at both to see how the consumer discretionary stocks compare.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »