China currently represents 20% of the company's operating profit, and management forecasts that number will increase to 40% by 2017. Profit in the country has grown from $120 million in 2002 to $365 million this year.
A majority of the growth will come from its KFC chain, which currently has just under 2,000 restaurants in China. Novak sees that brand's expansion not just in major Chinese markets but in 500 cities across that country.
Yum's Pizza Hut chain, which he compared to a casual-dining experience in China similar to Applebee's in this country, could reach 2,000 units from its current portfolio of just under 300 locations. And the company is also rolling out East Dawning, a Chinese-food chain which will have 50 stores by year end. Novak said that concept has the capability of becoming the McDonald's China.
During its most recently reported quarter, Yum's same-store sales rose 11% year over year. The company had 375 new restaurants planned for China this year.
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