Yum! Brands (NYSE:YUM) and Cheesecake Factory (NASDAQ:CAKE) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Yum! Brands pays an annual dividend of $1.44 per share and has a dividend yield of 1.7%. Cheesecake Factory pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. Yum! Brands pays out 48.6% of its earnings in the form of a dividend. Cheesecake Factory pays out 50.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cheesecake Factory has increased its dividend for 5 consecutive years. Cheesecake Factory is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent recommendations for Yum! Brands and Cheesecake Factory, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yum! Brands presently has a consensus target price of $90.33, indicating a potential upside of 3.95%. Cheesecake Factory has a consensus target price of $52.93, indicating a potential upside of 7.64%. Given Cheesecake Factory’s higher possible upside, analysts clearly believe Cheesecake Factory is more favorable than Yum! Brands.
Risk & Volatility
Yum! Brands has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Cheesecake Factory has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.
Insider & Institutional Ownership
71.1% of Yum! Brands shares are held by institutional investors. 0.6% of Yum! Brands shares are held by insiders. Comparatively, 8.8% of Cheesecake Factory shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Yum! Brands and Cheesecake Factory’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Yum! Brands and Cheesecake Factory’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Yum! Brands||$5.88 billion||4.69||$1.34 billion||$2.96||29.36|
|Cheesecake Factory||$2.26 billion||1.00||$157.39 million||$2.60||18.91|
Yum! Brands has higher revenue and earnings than Cheesecake Factory. Cheesecake Factory is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Yum! Brands beats Cheesecake Factory on 12 of the 17 factors compared between the two stocks.
About Yum! Brands
YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. As of December 31, 2017, it had 21,487 KFC units; 16,748 Pizza Hut units; and 6,849 Taco Bell units. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is headquartered in Louisville, Kentucky.
About Cheesecake Factory
The Cheesecake Factory Incorporated operates restaurants in the United States. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of August 21, 2018, it operated 215 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 14 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 21 The Cheesecake Factory branded restaurants under licensing agreements internationally. The company was founded in 1972 and is headquartered in Calabasas, California.
Receive News & Ratings for Yum! Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yum! Brands and related companies with MarketBeat.com's FREE daily email newsletter.