YYUMCYum China Holdings, Inc.

Yum China runs KFC and Pizza Hut in China as an independent company rather than a division.

Separating from the parent was done for independence of decisions in a market that lives by its own rules: delivery, payment by phone, a menu tuned to local taste. KFC holds a position here it has nowhere else — a mass-market chain perceived as everyday rather than foreign.

Unlike the Western model, the company owns most of its restaurants rather than selling franchises — so it keeps all the revenue and bears all the costs. Growth comes from opening in smaller cities. Risks: consumer demand in China, competition from local chains and the currency. Coffee sold under a separate brand has become a distinct and fast-growing line. A dividend is paid and buybacks are active.