Phillip Securities' Wong has an appetite for Yum China

Yum China Holdings might not be a familiar name to many investors here, but the brands it runs in China will be: KFC, Pizza Hut and Taco Bell. As the largest restaurant chain operator in China, its ability to capture growing spending power of what is one of the world’s largest consumer markets is why Louis Wong, director of Phillip Securities Hong Kong, likes this stock.

Besides operating the familiar Western brands, Yum China also holds a trio of Chinese-themed cuisine brands selling the familiar taste of home to local consumers. They are East Dawning, a Chinese fast food chain serving boiled dumplings; Huang Ji Huang, offering food in a simmering pot; and Little Sheep, a famous steamboat brand.

Recognising the growing popularity of coffee in a country that gave the world tea, Yum China runs the COFFii & JOY chain featuring specialty hand-dripped coffee, as well as the Lavazza Italian coffee franchise.