7. Yum! Brands Inc. (NYSE:YUM)
Yum! Brands, Inc. continues to attract bullish attention as a high-quality restaurant stock, recently trading near $168.51 and building momentum in the consumer discretionary sector. The company, which franchises global quick-service brands including KFC, Taco Bell, and Pizza Hut, is entering what many investors view as a strategic inflection point following its plan to spin off its pizza business. That restructuring move has drawn public support from Jim Cramer, who recently described Yum! Brands as “a horse lately,” noting its roughly 9% rise and advising investors to hold the stock and buy on any pullback. Cramer emphasized that shedding Pizza Hut could unlock stronger reported numbers, particularly as Taco Bell’s performance becomes more visible.
The spin-off is widely interpreted as a value-unlocking catalyst. By narrowing focus and allowing Taco Bell’s growth profile to stand out, Yum! Brands may drive improved earnings clarity, margin expansion, and higher valuation multiples. Taco Bell has been one of the strongest performers in the fast food industry, benefiting from menu innovation, digital ordering growth, pricing power, and robust same-store sales. As the company streamlines its portfolio, investors gain a clearer view of its highest-return assets, reinforcing the long-term bull case for YUM stock.
Yum! Brands’ asset-light, franchise-driven model supports steady free cash flow, global unit expansion, and consistent dividend growth, positioning it as both a defensive and growth-oriented investment. In an environment where investors favor focused business models and scalable international brands, Yum! Brands combines restructuring upside with durable consumer demand. With endorsement from influential market voices and a strategic plan that highlights Taco Bell’s strength, YUM stock remains a compelling play on global quick-service restaurant growth and shareholder value creation.
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