Technical Research on Wendy's and Yum! Brands: Food Services Companies Capture Global Markets
LONDON, February 19, 2013 /PRNewswire/ --
Restaurant stocks are still trying to get back to their pre-recession levels. With the improving economy, the public has started to spend money on dining out again, but the spending level is much lower than before. Restaurant companies are devising new strategies to boost their bottom-line and stay afloat. International expansion is one such strategy. Yum! Brands (NYSE: YUM) is growing at double-digit rate in emerging markets like India, handily beating saturated U.S. and European markets, where the brand's growth rate is in low-single digit. Its competitor The Wendy's Company (NADAQ: WEN) is also poised to do well as the company recently announced its first dividend for 2013. StockCall has posted free technical research reports on Wendy's Co. and Yum! Brands and these can be accessed by signing up at
Yum! Brands Grows Fast in India
Yum! Brands is trying to balance its growth in emerging markets. The chain restaurant company saw 6 percent decline in its same-store sales in China. It operates a chain of KFC outlets in the country and in the recent past, has been accused of selling sub-standard food products, causing a major decline in its volumes. However, at the very same time, its same-store sales increased 24 percent in India. It is likely that the setback in China is temporary in nature and the company would resume its growth trajectory in the country. Yum! Brands Inc. technical report can be accessed for free by signing up at
Yum! Brands' stocks clocked negative growth of about 4 percent on a YTD basis. It also offers 2.09 percent dividend yield. The stock suffered due to the company's conservative outlook for 2013. However, the stock lately witnessed good insider buying, which shows management's faith in the company's future direction. The company board member Robert Walter bought 35,000 shares at $62 a piece. It has also garnered interest from institutional investors.
Apart from Asia, Yum! Brands is also expanding in Africa and Central America. The company is looking to open 950 new outlets this calendar year. The expansion will have positive effect on the stock. For its fourth quarter, the company's earnings grew 11 percent, surpassing target rate of 10 percent. The stock provides a good investment potential for the long-run.
Wendy's Provides Solid Outlook
The Wendy's Company is a growing star in the restaurant industry and its stock has been showing positive growth. Apart from this, the company also offers a good dividend yield at 3.04 percent. The company recently announced 4 cents per share in dividend, payable on March 15th. Wendy's is also scheduled to report its fiscal 2012 and fourth quarter results on February 28th. The results are likely to be positive as its preliminary result reported in January was positive, providing fillip to the stock. Download the free report on The Wendy's Company upon registration at
Wendy's provided robust outlook for the coming year. It expects the EBITDA to grow in the range of 5 to 8 percent while same-store sales are likely to increase by 2 percent to 3 percent in North America. The company also undertook a rebranding exercise and it is restructuring its restaurants and business model. According to the company's statement, the rebranding exercise brought about 25 percent increase in sales volume. All these efforts are expected to bring positive yield and the company stock is likely to show positive momentum.
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