How many investors have looked into Yum! Brands (NYSE:YUM) enough to know that it is so very close to being as much of an emerging markets play as an operator of quick service restaurants in developed countries? The story of how this company saw the growth potential of China and other markets long ago and positioned itself accordingly is a great story for another day, but for now the earnings at this global restaurant operator are what should be in focus.
The Quarter That Was
Overall sales climbed 3% for the third quarter, reaching almost $2.9 billion. Somewhat remarkably, China is now the largest revenue contributor to the firm - revenue from China rose 20% to about $1.2 billion, while U.S. revenue dropped 8% to $970 million. China's same-store sales grew 6%, and while this benefited from the company's involvement in an exposition, the overall momentum is simply stronger than that of rivals like McDonald's (NYSE:MCD). Elsewhere, the company saw international same-store sales growth of 1%, and similar 1% growth in the United States.
The complete article can be found by clicking on the link below:
http://stocks.investopedia.com/stock-analysis/2010/Yum-Brands-Looking-Pretty-Tasty-In-China-YUM-MCD-DPZ-PZZA-AFCE1007.aspx
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