Another Yummy Quarter From Yum Brands

Yum Brands Inc. (yum) the world's largest restaurant chain which owns Taco Bell, KFC, Pizza Hut and A & W restaurants announced a 31% jump in quarterly profit today April 22, 2008. Of course, growth was fueled by China were they saw 12% year over year growth!

Things will only be getting stronger for Yum Brands in China were they open up a KFC every single day of the year! Not only do the Chinese people love KFC, but the upcoming Olympics should also bode well for them, as Westerners will flock to the restaurants they know in China like KFC and Taco Bell.

Let get to the numbers, first-quarter net income rose to $254 million, or 50 cents per share compared to $194 million, or 35 cents per share, a year earlier.

Earnings per share were 42 cents a share after backing out a gain from the sale of KFC in Japan, analysts were looking for 40 cents, so they beat that handily, even in this tough economic environment. Revenues for the quarter were $2.4 billion up from $2.2 billion.

One of the more promising signs from the earnings from Yum Brands was that they posted growth at established restaurants in the United States, reversing year-earlier declines and quelling fears that a slowdown in the US would hurt Yum's bottom line.

Yum Brands (yum) also raised its forecast for 2008 per-share earnings to $1.87 from $1.85, another encouraging sign from the fast food giant!


Of course, here at Stock Picky we have been behind this slow moving giant for quite some time now. Sure, it is not the most exciting stock to watch, but it pays a decent dividend of 0.15 cents per share or a 1.56% dividend yield. Nothing too exciting, but this company still has a lot of room to grow not just in China, but all over the world! Everyone knows about KFC, Taco Bell, A & W and Pizza Hut, they are strong brands that will always draw in customers time and time again as they spread across the globe.

Yum Brands is a great long term investment for anyone who wants own a stock they don't have to watch every day. For more reasons to own Yum Brands check out Yum Brands in China.

CECO Environmental Makes It's Entrance Into China

CECO Environmental Corp ticker symbol (CECE) has announced that it will buy Fisher-Klosterman, Inc. for 15 million cash and 1 million in CECE stock. This strategic acquisition will not only help improve CECO Environmental's revenues and net income, but will also provide a key 40,000 square foot sales and manufacturing facility in Shanghai, China. This should help CECO display it's already massive product line to those in red hot China.

"We are excited about joining CECO and advancing our shared strategic vision for the company. CECO offers the Fisher-Klosterman companies improved access to capital, a seasoned team of successful senior management, larger- scale marketing resources, internal supply of many related products and services, and expansive relationships with new potential customers," said William Heumann, president of Fisher-Klosterman, Inc.

The acquisition of Fisher-Klosterman is yet another step in the right direction for CECO Environmental. The potential for environmental pollution control in China will become huge. With the world's eyes on China for the upcoming Olympics, China will be forced to clean up it's act. People are already starting to say that the athletes will not be able to perform in such smoggy conditions. China has pasted The United States in terms of Greenhouse Gases as well, so it is only a matter of time before the world starts to put the pressure on them to become more energy efficient and reduce their air pollution. Of course, if you are familiar with CECO's business you know that they can really benefit from these upcoming environmental standards not only in China, but all over the world.

China is a growing industrial hot spot, and the demand for an established air pollution control company like CECO could be huge. Needless to say we here at Stock Picky have been behind CECO for a little while now, and the stock has taken a hit since it was first highlighted it at $13.37. As long as you spread out your buys over time you should be just fine, as is the case with all long term stock picks. Remember, this company is tiny at only a 138 million dollar market cap, so fluctuation like this are not abnormal. Also, take into account that they are reporting earnings on March 10th, 2008 and this could send the stock in either direction over the short term.

For more reasons to own CECO check out my first post here...

Yum Brands Continues To Grow In China!

This stock had a stellar performance today after releasing 3rd quarter earnings. Yum Brands beat analysis estimates by a full $.05 and the stock took off in after-hours trading to hit a new 52 week high.

In case you are not familiar with Yum Brands, they own a series of restaurants including Taco Bell, Pizza Hut, A & W, Kentucky Fried Chicken (KFC), and Long John Silvers and is a company that is quickly spreading itself across the globe. One little statistic I just love is the fact that they are opening up a new KFC at least every single day this year in China! Now that is what I call growth...

I realize that this company is already pretty huge though and therefore their stock could be hard to move, but the company just announced an addition to their buyback plan which should be a good support for this stock. Plus just shows the confidence the management has in the future of Yum Brands.

Overall, I would have to say that this is a pretty safe bet even at it's 52-week high. If that wasn't enough they also pay a dividend which is yet another reason to own this stock.

What does everyone else think about this massive restaurant chain? They seem to trade at a reasonable multiple and are looking better and better with all this global growth, so how far do you think this stock can run?

For more information you can always visit their website here.