Yum Brands is out with earnings after the bell on Tuesday. The parent company of KFC, Taco Bell and Pizza Hut, has posting double digit gains so far this year. David Palmer, UBS senior restaurant analyst gave his take on the stock to CNBC.
"We like the stock, particularly in the second half," Palmer said Tuesday. "The key metrics for this company are its same store sales and China, which has become its more profitable division. If they do well, the stock will go higher."
"China is pushing upwards of 40 percent of Yum's profit by the end of the year," Palmer added. "That's a very meaningful contribution to the company and we expect it to get even better."
Palmer raised Yum stock to a 'buy' from neutral on March 9, 2010. He then raised Yum's target price from $47 to $49 on June 29 of this year.
Scorecard— What They Said:
- Palmer's previous appearance on CNBC (June 4,2010)
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Disclosures:
Palmer nor his family own any Yum Brands stock.