Better Buy: McDonald's or Yum! Brands After Selling Pizza Hut for $2.7 Billion?
Yum! Brands' sale of Pizza Hut could make its financials more appetizing to investors, but does that mean investors should choose it over McDonald's?
Better Buy: McDonald's or Yum! Brands After Selling Pizza Hut for $2.7 Billion?
Overview
Yum! Brands (NYSE: YUM) just announced that it plans to sell its Pizza Hut franchise to LongRange Capital for $2.7 billion. Investors have long known Yum! Brands as the umbrella that includes KFC, Taco Bell, and Pizza Hut. Pizza Hut's performance has generally lagged that of the other franchises, and this was likely a factor in the decision to sell it.
One has to assume unloading a poorer-performing franchise should bode well for Yum! Brands shareholders. Still, one also might wonder how it compares to McDonald's (NYSE: MCD), which has built one of the more successful fast-food enterprises in existence. Let's take a closer look at both to see how the consumer discretionary stocks compare.
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Originally published at www.fool.com.
