Yum Sees Tripling India Store Count to About 2,000 by 2020
Comment of the Day

December 04 2013

Commentary by Eoin Treacy

Yum Sees Tripling India Store Count to About 2,000 by 2020

This note by Caterine Larkin for Bloomberg may be of interest to subscribers. Here it is in full:

Yum says at investor meeting that KFC stores in India avg $1m annual sales.
Pizza Hut testing cafe store concept in India
Pizza Hut delivery in China ¡°in early days of growth¡±
Says Chinese govt investing in infrastructure
YUM sees ¡°huge opportunity¡± for KFC in France and Germany


Eoin Treacy's view

Few companies have been as successful at adapting to foreign markets as Yum Brands. As a result the company generates more revenue from China that the USA and the difference in product offerings between the two jurisdictions is a significant influence on that figure. 

KFC and Pizza Hut probably represent less of a offense to India's large Hindu population than eating beef at McDonalds and the company has a proven track record of creating new menus to suit local tastes. 

The share pulled back sharply yesterday to retest the upper side of its almost two -year range and a benefit of the doubt can continue to be given to medium-term upside provided it continues to hold above the $64 area. 


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