We have a favorable view of the firm’s plan to spin off its China division and think both business will benefit from significant competitive advantages, says Morningstar’s R.J. Hottovy.
Current headwinds aside, wide-moat Yum remains a compelling long-term cash flow story, says Morningstar's R.J. Hottovy.
Despite the recent market pullback, the consumer defensive sector in aggregate still trades at a slight premium to our fair value estimate, but we still see several pockets of opportunities among high-quality companies.
Most of the market's global macro fears are derived directly from China, where we've heard cautionary statements from a number of consumer-facing companies.
The market is overlooking several key catalysts on the horizon for Yum Brands, says Morningstar's RJ Hottovy.
As the retailer hits a profitability inflection point, we're increasing our fair value estimate of the shares, writes Morningstar's R.J. Hottovy.
The restaurant’s ability to raise prices to offset higher costs supports our thesis that the narrow-moat company benefits from strong brand intangible assets, writes Morningstar analyst R.J. Hottovy.
The company's growing global presence and ability to withstand disruptions in China validate our upgrade.
Changing consumer preferences and technological innovations have led to valuation shifts across different consumer cyclical industries.
Greater disclosure around its cloud computing business bolsters our view of the Internet giant's wide moat rating and longer-term cash flow opportunities.
Notwithstanding disappointing first-quarter sales, Chipotle can weather a more competitive fast-casual industry in the years to come, writes Morningstar’s R. J. Hottovy.
Picking up on changing dining trends, fast-casual restaurants--including these intriguing investment names--have outpaced quick-service and casual dining.
Chipotle continues to post impressive results, but the market may be underestimating long-term competitive threats, writes Morningstar’s R.J. Hottovy.
The retail giant's results point to longer-term margin potential, but the profitability expansion will be slow and uneven, writes Morningstar's R.J. Hottovy.
Alibaba’s lower-than-expected revenue growth is not a cause for concern as the firm continues to build its network effect, writes Morningstar’s R.J. Hottovy.
Companies that can meet the new realities of retail likely have an economic moat, ultimately leading to better full-price sales and margin performance.
Africa has the foundation for an exceptionally long runway for consumer spending.
Its recently announced plans give us more confidence in our wide moat rating.
The Chinese e-commerce giant’s first public update shows the power of the firm’s network effect, though shares are slightly overvalued at today’s levels, says Morningstar’s R.J. Hottovy.
We expect strong top-line growth but, in the near term, contracting margins for the wide-moat e-commerce firm.
We’re lowering our fair value estimate for the Internet giant after a disappointing third quarter, but we still see shares as undervalued and the firm as a disruptive force.
We will likely trim our fair value estimate for McDonald’s as the firm struggles to keep pace with evolving consumer tastes.
Although shares are pricey, the firm wields a tremendous amount of pricing power, reinforcing its narrow moat, says Morningstar's R.J. Hottovy.
We’re nevertheless maintaining our fair value estimate as PayPal continued to show good momentum, says Morningstar’s R.J. Hottovy.
Substantial structural and operating changes are ahead.
The shared services agreement between eBay and PayPal should preserve the synergies between the businesses while allowing management to focus on enhancing their respective network effects, says Morningstar’s R.J. Hottovy.
Amid global uncertainty, consumer cyclical companies with moats will fare the best, in our opinion.
Valuation on the newly minted wide-moat firm may be reasonable, but potential investors need to appreciate the key business, regulatory, and stewardship risks, says Morningstar’s RJ Hottovy.
Understanding the assumptions behind our $90 fair value estimate, high uncertainty, and poor stewardship ratings.
Apple Pay is clearly a potential disruption to eBay's PayPal, but we don't view mobile payments as a zero-sum game, says Morningstar’s R.J. Hottovy.
Merger agreement puts Canadian restaurant in the Top 3 and enhances its moat.
Concerns over a key supplier to both Yum and McDonald’s in China have hurt sales and stock prices in the short run, but Morningstar's R.J. Hottovy expects the firms to bounce back.
The online retail giant's third-quarter outlook draws some concern, but we have conviction in the firm's margin expansion and investments, says Morningstar's R.J. Hottovy.
Brand power can create strong competitive advantages in the consumer sector, but cost advantages and network effects also can play big roles.
Chipotle’s phenomenal 17.3% comp increase during a tepid quarter for restaurant operators is a testament to the firm’s business model, but valuation levels remain a concern, says Morningstar’s R.J. Hottovy.
Management’s response to the Marketplaces data breach, the firm’s impressive gains in payment and mobile volumes, and its capital-allocation efforts are reasons why Morningstar’s R.J. Hottovy is maintaining a long-term positive outlook for the firm.
China's expanding middle class will give e-commerce a boost.
We assign the e-commerce firm a wide moat rating ahead of its IPO.
This Internet giant's public offering could be one of the largest in history, and investors should consider its network effect and growth tailwinds.
New device could keep customers in the Amazon ecosystem and drive cross-selling opportunities but will take time to gain traction in the global smartphone market.
Priceline's announced acquisition of OpenTable could bring valuable synergies, but we think Priceline overpaid.
Despite the recent run of negative news, our wide moat rating and positive long-term thesis for eBay remain in place.
Morningstar's R.J. Hottovy says a key uncertainty ahead of Alibaba's IPO is whether the firm can duplicate its success outside of China.
The forthcoming changes in these firms' executive offices shouldn't make waves, as the new helmsmen are wise choices.
Amazon's margin expansion is less visible than its growth trajectory given new investments on the horizon, but the firm remains one of the most disruptive companies in the consumer space.
The recent sell-off makes wide-moat Amazon even more attractive.
As consumers rapidly embrace online and mobile commerce, traditional retailers are scrambling to refine their strategies.
Disruptive network effects are allowing several consumer-oriented names to excel above their traditional counterparts.
Morningstar's Matt Coffina and R.J. Hottovy dissect the six key factors determining whether retail-company moats will survive technological disruption.
Amazon Prime has likely hit a key inflection point and will help the online giant lock in customers while neutralizing competitive efforts from traditional retailers, says Morningstar's R.J. Hottovy.