Is Yum! Brands Finally Seeing a Turnaround in China?

Yum! Brands (NYSE: YUM  ) reported fourth-quarter earnings last night after market close, and on the whole, investors cheered the report. The fast-food giant saw a jump in operating profit thanks to an increase in labor efficiency in China, one of Yum!'s most important markets. Shares are climbing steadily today on the back of this report.

Yum! has been struggling in China due to avian flu fears affecting its KFC restaurant chain. Motley Fool bureau chief Michael Finarelli thinks that although same-store-sales growth in China actually declined 4%, it's a meaningful improvement. Michael believes Yum!'s brands remain intact, and the company has a tremendous footprint to continue growing internationally, making the stock an intriguing pick for investors.

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