Quick-service restaurants have their sights set abroad, as international expansion provides growth opportunities beyond a domestic environment marked by reduced traffic, Argus Research Analyst John Staszak says.
“Fuel prices are high and people are feeling pinched because of rising prices, but I’m still kind of bullish on quick-service restaurants. I think they should do okay, but it’s kind of weak demand here because of joblessness and the weak housing,” Staszak said. “So I’m really looking at quick-service restaurants that are growing internationally.”
Yum! Brands (YUM) is a quick-service restaurant with contrasting domestic and international realities. While the company has struggled to increase domestic same-store sales for its KFC brand, Yum! is quickly increasing its presence in China.
“Yum! Brands is growing rapidly in China, and they have a lot of room to grow in China,” Staszak said. “They just have 1.5 restaurants per million customers, and they usually handle more than that, 60 restaurants per million people here in the United States. So they’re far from saturation in China.”
Canadian Banks Expand Abroad, Resume Dividend Growth
November 22, 2011
Restaurants Look to Alternative Channels for Growth
March 30, 2012
Chinese Production Shifts Inland As Domestic Demand Increases
January 31, 2011
Matrix Service Co. (NASDAQ:MTRX) CEO John R. Hewitt: "High Demand for Ammonia Because of its Ability to be a Hydrogen Carrier"
September 12, 2024
Recommended Reading – Two New Chief Executives With Resumes for a Quick Sale
September 25, 2008
