Yum! Restaurants International and India Will Save the Dayhttp://www.fool.com/investing/general/2013/10/10/yum-restaurants-international-and-india-will-save.aspx Michael Lewis
October 10, 2013
Yum! Brands (NYSE: YUM) delivered some dismal earnings on Tuesday along with downbeat guidance. The company's most important market, China, continued to suffer from a poultry-supply issue that has lingered since last December. With same-store sales down in the region and flat in the United States, the market is finding plenty of reasons to send the stock down. But not all is fowl with the parent company behind KFC, Pizza Hut, and Taco Bell. One area of Yum!'s business continues to thrive and grow well into the double digits. It may not be the company's most important segment today, but it very well could be in the near future. Here's why Yum!'s earnings weren't so bad.
A bad time
Even during Yum!'s dismal third quarter, India market sales grew 24%, while International emerging markets grew 11%. Yum! Restaurants International and India will have record new-store openings this year -- more than 1,000. The stores are largely franchised in these regions, which include