Emerging Markets The Smart Way

摘要

Yum Brands is the quintessential American fast-food company, operating chains like Kentucky Fried Chicken, Pizza Hut and Tkco Bell. If s also a great emerging markets play. The Chinese love KFC-breakfast with the Colonel is a huge hit in Beijing. Pretax profits from the Louisville, Ky. firm's Chinese operations exceeded those of the U.S. parent by 18% in the first nine months of this year. Yum's Chinese profits are growing 30% annually. Restaurant margins hover around 24%, compared with 14.5% at home. China, in fact, is the engine that's driven up Yum's stock 44% this year. Forget about buying shares in emerging markets companies and rolling the dice on their murky accounting and governance standards. Instead, consider tapping into the wealth being created abroad via big U.S. stocks like Yum (market cap: $24 billion), 3M ($62 billion) and Cummins ($19 billion).