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A KFC restaurant opens in Beijing.
A KFC restaurant opens in Beijing.
(SHUMEI/AP)

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Will China keep its appetite for Yum?

Yum Brands shares are going to do as well, in the long term, as its restaurants do in China. Roughly half its profit comes from China, and the company is opening a huge number of Kentucky Fried Chicken and Pizza Hut stores there – 889 in 2012, a 17-per-cent increase. Until recently, it has expanded Chinese same-store sales nicely, too. If Yum can keep this up, its sluggish U.S. operations become less important and its prospects in other emerging markets, such as India, more exciting.