This weekend I was in Flagstaff relaxing in our family cabin. If you’re not familiar with Arizona, Flagstaff is the largest city in northern Arizona. It is home to Northern Arizona University and is often used as a stopping point for travelers heading to the Grand Canyon.

The cabin is a great escape. It is the perfect place to avoid the heat of the desert, the hustle and bustle of the city and the distractions of everyday life. Temperatures this time of year are in the high 70s with overnight lows in the mid 50s. The only struggle is the end of the weekend when you need to convince yourself to pack up and go.

In short, it is the ideal place to relax.

As you can imagine, in the cabin I read a lot. Of course, my fun reading is financial magazines, news, and industry reports. I know, I’m a little crazy. Anyway, one of the articles I read was about China. The investment ideas offered made little sense to me. Many convoluted numbers and wrong conclusions were drawn.

That’s when I told myself that there has to be an easier way. So I did a lot of research and found out some interesting facts. . . but more on that in a minute.

Many of you have read my other articles on China. I think as an emerging nation, it’s great to fall behind from an investment point of view. Investing in these early stages is always risky, but the rewards are huge.

The nation is in the midst of one of the biggest developments we will see in our lifetimes. Development proceeds at a dizzying pace. Roads and bridges are being built, industry is flourishing, and the workforce is evolving.

what do I want to say with that?

I mean that just 20 years ago the country was mainly focused on agriculture. Now a significant part of the country is focused on manufacturing, construction and other trades. Products in China are being developed and built. As a result, the labor force is growing, as is the middle class.

Opportunities are everywhere in China. So how can the average American investor participate in this great opportunity? I have already talked about China ETFs. These stock baskets are great, but what if you want something more specific?

I started thinking of all the US-based companies expanding their operations in China. It seems that not a day goes by without someone announcing a new initiative from China. Automobiles, industrial, energy companies, even restaurants. Everyone is jumping on board the growth of China.

Then I had another thought. . .

Asian diets are changing. It used to be rice and vegetables. Now the Chinese diet includes more protein and packaged and processed foods. American fast food culture (for better or worse) is crossing the ocean and establishing itself in China.

The big three of fast food.

mcdonald’s (MCD) sees growth in China. They have plans to open about 275 new stores by the end of 2009. That will bring their total to about 1,000 restaurants. king of burgers (BKC) was early in the trend for China, but clearly stumbled. They opened the first store in 2005 to great fanfare. Today they have added a whopping 12 new stores according to China Retail News.

What a missed opportunity.

There is a company that is outperforming both Burger King and McDonald’s. mmm! brands (YUM) is clearly separating itself from the rest. I know. They have a weird name, but I didn’t make it up.

Now yum! Doesn’t sound familiar, don’t despair. You probably know them by the name of one of their restaurants. In fact, I bet you’ve probably eaten at one of their stores in the last month.

mmm! operates and franchises stores under the banners of Long John Silver’s, Pizza Hut, Taco Bell, A&W and, of course, KFC.

Does that ring a bell? I thought I would. This company is really amazing; it’s like having five different fast food companies at the same time. They have more than 35,000 restaurants in more than 110 countries. And in 2007 its sales exceeded 10,000 million dollars. Not bad for a fast food chain.

But that’s not even the exciting part.

Do you remember the facts I promised you? Are here.

The real thrill of Yum! The brands are China. Since 2005, the company has been breaking down the results of the China division. That’s how important this growth is to Yum. The company has opened more than 3,100 stores in China with more opening every day.

This is your number one market for expansion. Last year alone, the China Division contributed more than $375 million in operating profit. In 1987 they opened their first KFC in China, they now have over 2,200 operating at this time. Your Pizza Hut franchise is working hard to catch up. They opened the first Pizza Hut in 1990. They now have 360 ​​locations in operation. . . and more on the way.

For yum! Brands growth potential seems limitless. If you ask me, yum! Brands is the American way to capture growth in China!