Developing markets with emerging middle classes are driving profits for some familiar American names. Many mature U.S. companies are taking advantage and rediscovering growth by going global. Here are three companies going global.
Familiar companies growing globally
Tupperware is off to a great start this year. The company reported record first-quarter sales and upped guidance for the rest of the year. Brazil, India, Indonesia, Malaysia, the Philippines, Turkey, and Venezuela all had double-digit sales growth in the quarter. Despite its recent run, the stock trades at just over 12 times 2012's earnings.
Interestingly, the popularity of Kraft's Oreo cookies is driving international sales growth. This year, the company expects the Oreo to be a $700 million business in developing markets, up from $175 million in 2006. If this trend continues, robust future growth can be expected as Kraft continues to perfect its craft in developing markets.
Yum! is also looking to add to its existing chain of overseas restaurants. The company recently made an offer for Little Sheep Group, a Chinese chain of hot pot restaurants. This acquisition would further boost the company's market share in China.
The bottom line
Many established U.S. companies are embarking on a second growth stage via emerging markets. As a result, these companies offer a relatively low-risk investment opportunity with good growth potential to boot.
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