This Stock Could Dominate the Fast-Food Industry -- and You've Likely Never Heard of It
Yum China Holdings (NYSE: YUMC) has gone where few have gone before. The company has built a supply chain in a fragmented market to set itself up for large-scale expansion. Here's how it works.
Historically, small-scale full-service restaurants have held the lion's share of the market in China. The sit-down mom-and-pop restaurant market is fragmented throughout the country. As such, so are restaurant suppliers, making it difficult for chains to source food and other supplies at full scale.
While others saw the fragmented nature of the market as a barrier, Yum China saw an opportunity. Over the last several years, the company has built out its supply distribution network to get locally sourced food and supplies to its expansive collection of fast-food restaurants. The network includes 25 logistic centers and five consolidation centers in China.
Source Fool.com
