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Yum Brands expanding to smaller regions of China

By wmadministrator

LOUISVILLE, Ky. (Dec. 6, 2012) — Yum Brands, the Louisville-based owner of KFC and Pizza Hut, is expanding to smaller cities in China, the Associated Press reported today.

The brands are well established in China’s bigger cities. Now the company is focusing on less urban regions.

Building that infrastructure in those outposts of the developing nation will give it the kind of advantage that McDonald’s established decades ago in the U.S., CEO David Novak said at the company’s investor conference Thursday, according to the Associated Press.

Yum Brands is the biggest Western fast-food chain in China, with about 5,400 locations, compared with 1,600 for McDonald’s, the AP said, but Yum said last week that it expects a key sales figure to fall 4 percent in China in the fourth quarter.