“Honestly, the resilience of Yum has been kind of incredible,” the “Mad Money” host said of the KFC, Taco Bell and Pizza Hut parent. “As tailwinds have turned into headwinds, the darned thing just keeps chugging, and I think last week’s marketwide pullback has finally given you a nice little entry point in a stock that has been red-hot.”
And with management now focusing on the company’s almost entirely franchised business — a Cramer-fave model because of the lower risk and steadier revenue stream — Yum has transformed into one of the best restaurant chains Cramer follows, he told investors.
“The bottom line? Yum’s stock screamed higher as management made investors believe in their refranchising story, but then last week the whole market got slammed into a retaining wall [at] 60 miles an hour,” he said.
“I think you’re getting a rare pullback in a stock that’s been marching steadily higher for years,” Cramer continued. “I would be a buyer of this incredibly well-run company into any additional weakness.”
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