Look for more post-COVID gains

Article Excerpt

These two fast-food stocks have rebounded nicely since the onset of the COVID-19 pandemic: Yum Brands is up 109% in the past five years, while Yum China has gained 17%. We expect both stocks will continue to move higher over the next few years given the pandemic prompted consumers to eat at home and take out instead of going to restaurants. To further tap into this trend, both Yum Brands and Yum China continue to expand their online ordering and delivery services. As well, thanks to improving earnings, both firms are rewarding investors with rising dividends and share buybacks. YUM! BRANDS INC. $159 is a buy. The company (New York symbol YUM; Aggressive Growth Portfolio, Consumer Sector; Shares outstanding: 279.1 million; Market cap: $44.4 billion; Price-to-sales ratio: 5.9; Dividend yield: 1.8%; TSINetwork Rating: Average; www.yum.com) operates more than 61,000 restaurants in over 155 countries—70% of those outlets are outside of the U.S. Its main banners are KFC (fried chicken), Pizza Hut, Taco Bell (Mexican food)…