"Yum is not the kind of company to sit and wait for the China economy to improve on its own," he said. Yum's strategy is to expand from the tier one cities in China to the outer cities where costs are low and the competition is rare.
"If Yum takes a lesson from Altria (MO) and breaks up, I think the sum of its parts could be worth $77 a share," he said. That's up about 14%. The domestic business is strong enough to stand on its own and the international business is sizzling.
"I think the bulls are right and the bears are letting a short-term Chinese speed bump scare them away from what I regard as a great story," Cramer said.
"The story would be better if Yum breaks itself up into a fast-growing international company and a value-oriented domestic play. That could create instant profits for all aboard," Cramer said.
No Huddle OffenseGovernment has been known to make some stupid investments, Cramer said, but one of the best ever made was when the federal government invested in American International Group (AIG) during the 2008 financial crisis. Today, Cramer said, the government announced it would be selling its remaining stake. The government did the right thing in putting money into AIG, he said, and he thanked in particular Tim Massod, who was in charge of the Treasury's TARP unit overseeing AIG, for not selling government shares until it could get a good price, and AIG CEO Bob Benmoshe, who "came in and through sheer force of will fixed the darn thing and now it's riding higher than before." This was one case, Cramer said, when the federal government "sure made shareholders winners." To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Anthony Buccino and Margo D. Beller in New York.
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