Yum! Brands (YUM)

(Market Call Minute.) Consumer stocks that sell into China are having a difficult time.

Fastest growing quick service restaurant in Asia by a mile. They had a tainted chicken scare that McDonalds had to face as well – a supplier. It can go significantly higher.

Short term events will cause temporary reduction in traffic but you can’t stop the growing middle class. They are looking at building out India and Africa. 2% but they always grow their dividend.

Very tied to China. We saw a stumble a while. He would go to something like Pepsi.

4^th quarter same-store sales growth in China was down a negative 4% because of the slowing Chinese economy. Feels that this figure will be positive next year. They still see lots of growth in China and will be focusing on the tier 3-6 cities for unit growth. Also focusing on India and Russia for the next decade.

Likes this one very much. Have done a marvellous job and have more to go. Wait for a bit of a pullback.

(A Top Pick Oct 12/11 . Up 38.31%.)

Growth in China is the primary reason she owns this. Over 40% of their earnings are coming from China. Stock pulled back when McDonald's (MCD-N) has announced negative comments. This company anticipates costs will stay at around 10% for the balance of the year. Continuing to grow new unit sales. Now branching into tier 3 and tier 4 cities. Targeting India and Russia as their next growth areas. Have had some good product launches in the US as well.