Cramer's Mad Money - The Best Way To Play China (2/16/12)
By Miriam Metzinger: Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday February 16.
CEO Interview: David Novak, Yum Brands (YUM). Other stock mentioned: Baidu (BIDU)
China is one of the biggest growth stories around, but Cramer does not recommend Chinese stocks, except for Baidu (BIDU). The best way to play China is with U.S. companies that do major business in China, like Yum Brands (YUM), which gets 42% of its revenues from China and reported a 20% increase in same store sales in the Middle Kingdom. CEO David Novak discussed the success of YUM in localizing brands and creating new menu items. He discussed some mistakes the company made with Taco Bell, including past unsuccessful ventures into the breakfast space, but is going to improve the strategy with better products and the introduction of high-quality coffee. He is confident the company can weather food inflation.
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