Yum Brands: Valuation Appears Stretched

Bjoern Wylezich/iStock Editorial via Getty Images Thesis Overview Driven by the sharp selloff of nearly 20% in McDonald's (MCD) stock from January through early summer, I issued a Buy rating on the company at $250 on a German platform. Since then, the stock has recovered up to around +10%. However, one noticeable aspect in a peer group comparison was the relatively high P/E ratio of competitor Yum Brands (NYSE:YUM). At the time of analysis around June, adjusted P/E was around 25, while those of market leade ...