Yum! Brands, Inc. (YUM)

When I lived in China, I ate a lot of fast food. It wasn't that I didn't like Tianjin's local restaurants, it was just because sometimes you want a menu you can read, and a meal that reminds you of home. McDonalds was farely popular there, with locations around the city. And the menu items were cheaper than here in the states, which was nice. But then there's KFC.

KFC was almost bustling, and during lunch and dinner, it was packed. People love chicken there, and they have a large variety of unique and familiar "hamburgers" made of various kinds of chicken. Even at McDonalds, I was the only one ordering the beef products it seemed like. So KFC has the edge, and a rabid fanbase. Add to that, for the most part, sandwiches at KFC were more expensive than at McDonalds, oftentimes being the same as US prices.

Then, there is Pizza Hut. There it is a casual dining restaurant akin to Olive Garden in the states, with sea food and many kinds of pasta and even BBQ lamb. I went to many birthday dinners and holiday outings with Chinese friends and my wife's family to Pizza Hut. And we waited almost an hour every single time to be seated. Prices are almost identical to the US for most of the menu.

Add to this, my wife's friend who worked at KFC was paid hourly, which is unusual for China, and very appreciated by the employees. She was also happy to be making 5.5 RMB (about $0.75) an hour after her 3 years of employment.

I haven't been to China to see the state of things in about 2 years. But if the prices remain as high (and the dollar has fallen since then, making it even sweeter) and the labor still extraordinarily cheap (even if they get raises, it will be a pittance compared even to payroll taxes in the US) then YUM will continue to grow and be an explosive investment for years to come.