China Is Crazy over KFC

Now, KFC is not the only America brand to make it overseas. Coca-Cola (KO) certainly gets a lot for credit for being all around the world. McDonald's (MCD) are popular, and the restaurant is seen in many Chinese cities. And while we may have gotten pizza from the Italians, Pizza Hut or local burger joints are popular for when people want to eat American.

Just like when you go south of the Mason-Dixon line you suddenly find sweet-tea available, the menus of overseas restaurants have been altered to suit the local audience. Rice instead of mashed potatoes with gravy is a more popular side. Sandwiches seem popular, but the basic chicken remains the same.

When you get off the interstate and are met with a large number of signs beckoning the latest food from both sides of the road, while listening to the rising trade gap news on the radio, you would probably never think of KFC as an international growth play in China, but from the hills of Kentucky, KFC is one thing we are exporting to the world.

KFC is part of Yum! Brands (YUM), which also operates Taco Bell and Pizza Hut. Yum! Brands has 37,000 restaurants in 110 countries. KFC has over 3,000 restaurants in China, compared to 5,200 in the United States and more than 15,000 worldwide. McDonalds operates about 800 restaurants in China and 31,000 worldwide.

Kevin does not own any stock in KFC, but he enjoyed patronizing them on recent travels in China.