In today’s world, if a company wants to expand, it needs to think internationally. The food industry is selling its wares on the international forums, and strong numbers from the emerging markets is bringing a nice boost for a fast-food giant and related food industry exchange traded funds (ETFs).
Yum! Brands’ (NYSE: YUM) reported impressive sales growth in China and emerging markets, with an expansion of 15% and 10%, respectively, writes R.J. Hottovy for Morningstar. The company’s international division, markets outside of the United States and China, expanded by 17.6%. [Craving Fast Food? Here Are 4 ETFs.]
Yum! also estimates a 12% growth for the year, which analysts believe is consistent with near-term expectations as a result of higher food commodity costs and labor inflation in China.
Morningstar projects that the China market will continue to bring low- to mid-single digit sales growth.