The fact that an iconic U.S. brand like Burger King is now under Brazilian control is getting some press coverage. Expect more of this as emerging markets exert their economic clout.
Like India and Brazil, China’s growing economy has ignited a burst of inflation, pushing up prices for everything, but especially food.
In Shanghai, the A shares fell another 1.92% last night as Beijing prepares to launch a set of price curbs
Chinese Web hosting company ChinaCache International Holdings continued a string of solid cross-Pacific IPOs today by jumping over 100% in its first day of Nasdaq trading.
ChinaCache (CCIH, quote) priced at $13.90 last night and opened at $30 this morning. By early afternoon, the stock was still trading above $28.
Considering that the initial offering priced well above a target range of $10 to $12 and triggered an optional secondary float of 600,000 shares, this performance is fairly spectacular and reflects strong recent appetite for any China-related investment.
The company is growing fast, with revenue expanding roughly 29% in 1H 2010 over last year, but has yet to generate consistent profits.
Meanwhile, Chinese fast food chain Country Style Cooking Restaurants (CCSC, quote) continues to impress investors after its Tuesday IPO.
The stock opened at $16.50 and is now above $29.
Investors are definitely eager to make space in their portfolios for new exposure to China’s burgeoning fast food markets. Shares of Country Style Cooking Restaurant Chain are soaring.
Trading as of today under ticker symbol CCSC (quote) is up about 55% from its offering price of $16.50.
In an environment where many IPOs have had less than inspiring debuts, CCSC is a great sign — and for emerging markets oriented investors, this company should become a terrific proxy on the entire Chinese restaurant sector.
YUM (quote) also manages hundreds of Pizza Hut and KFC locations in China, but that company’s global footprint makes pure-play visibility into the China market a little hard to get.
By contrast, CCSC operates exclusively in China proper and so its results should give us a direct sense of — and exposure to — the Chinese consumer.
CCSC was only started in 2007 and now has over 100 locations, giving it roughly 1/5 of the reach of YUM’s Pizza Hut, the leading food franchise in China. Needless to say, given China’s vast population and fast-growing middle class, this represents massive growth ahead for both companies.