3 Reasons China's KFC and Pizza Hut Franchisee Is a Buy For 2021
Yum China (NYSE: YUMC) -- franchisee of KFC, Pizza Hut, and Taco Bell from Yum! Brands (NYSE: YUM) in mainland China -- made lots of positive progress to close out 2020. Sales were back in year-over-year growth mode (up 11% to $2.26 billion), and adjusted net income was up 56% to $153 million (or up 76% when excluding Yum China's investment gains on Chinese delivery leader Meituan-Dianping (OTC: MPNG.Y)).
China's leading restaurant operator is about to start lapping results that were deeply affected by COVID-19 a year ago, so though share prices are up 39% over the last 12-month stretch, they look like a pretty good value. Here are three reasons why I think so.
Yum China's full-year 2020 financial results ended up being pretty decent, especially considering the economic lockdown it endured this time a year ago. The company's roots in online ordering and delivery and lots of new store openings were key here (more on both those topics later).
Source Fool.com
