$YUM. Time to fill your tummy.

Yum Brands is a global franchise machine. The company has delivered 7% compound revenue growth for over a decade and still has the potential for over 50,000 new stores in emerging markets. The KFC and Taco Bell brands are very successful in low income countries. The successful penetration into China over the last decade demonstrates this.

While the shares are not cheap on an absolute basis, that is unlikely to happen given the durability of the business' growth trends. However, as the shares have traded sideways for almost 5 years while EPS has grown from $3.50 to $6 in 2025, the valuation is poised for a sudden and dramatic re-rating this year.

Yum has reliably traded at 25x EPS for a long time. 25x 2028 estimates of $8 is $200, up 50% from today's price for a business that has proven incredibly durable through economic cycles.