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Yum! Brands is the “most growth-oriented of any service company I know,” Cramer said Tuesday. That’s no doubt due in large part to the company’s China business.
Chairman and CEO David Novak, appearing in the studio with Cramer, said KFC and Pizza Hut opened 100 restaurants in December alone – three a day – and about one a day throughout 2007. He likened fast food in China to the days when Ray Kroc was opening his first McDonald’s [MCD
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] here in the U.S.
And with only 2,100 KFCs and 350 Pizza Huts so far, but 250 million people among China’s growing middle class, “We’re just getting started,” Novak said.
This doesn’t mean the YUM! [YUM
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] has turned his back on growth here at home, though. Novak told Cramer his goal is to move beyond the standard fare and push desserts, beverages and healthier items to drive sales through his 20,000 U.S. outlets. He cited McDonald’s similar success in the States.
“If they can do it,” Novak said, “we can do it.”
Jim's charitable trust owns McDonald's.
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