Originally Posted by katwillny
Or is McDonal'ds yummier. Looking to get a position in YUM Brands for my ROTH. Im looking to hold long term. One of my concerns is that they rely heavily on revenues from China. I am also looking into McDonald's. What are your thoughts?
To me one of the features of Yum is that is doing so well in China. The majority of KFC profits and revenues come from China and have done so for probably 5 years. China is an exciting market, but Chinese companies are IMO much less transparent than US companies. I wouldn't completely trust Yum's accounting statement for its Chinese operations but I'd trust them far more than say FoxConn.
M* rate YUM as 3 stars with a fair value of $72, and MCD as 4 stars with a fair value of 105.