"We are really positioned as a part of the fabric of life in China," said David Novak, chairman and chief executive of Louisville-based Yum Brands Inc., parent company of KFC.

Yum's operating profits in China exceeded $200 million in 2004 — more than half the company's burgeoning international profits. And the pace of 275 locations opened in the country last year is expected to be matched in 2005.

Sam Su, president of Yum's China division, called China "the ultimate marketplace." He predicted that as the Chinese economy grows, it will someday surpass the number of KFC restaurants in the United States.

"In many parts of China, the local municipal governments actually view the arrival of a KFC as a sign of the city coming of age," Su said in a phone interview from China.

An industry analyst said KFC's recipe for success in China includes a solid business plan guided by a management team intact for years. China is "an important piece of the company that still has plenty of growth potential ahead of it," said Joe Buckley with Bear Stearns & Co.

Yum's China operations represented about 15 percent of the company's operating profits in 2004, a figure expected to reach about 18 percent this year, he said.

Buckley said Chinese fast-food consumers' preference for chicken has fed KFC's success: "It's an advantage to be the chicken brand, given that scenario."

KFC has tailored some dishes specifically to Chinese tastes. There's a twister sandwich styled after the way Peking duck is served, but with fried chicken inside along with cucumber shreds. Instead of cole slaw, which never caught on in China, customers can order seasonal vegetables. In spring, it's bamboo shoots; in summer, lotus roots are on the menu. In colder months, there's rice porridge and winter soup.

Other Yum brands also are vying for Chinese customers. The company opened at least 39 Pizza Hut restaurants in China last year, for a total of 146 outlets, and Su predicts a bright future for the chain. Taco Bell is testing a casual dining format in China, and Yum is even dabbling in Chinese fast-food with one test restaurant in Shanghai.

But KFC is clearly at the forefront of Yum's expansion. More than 100 KFC restaurants have sprung up in both Beijing and Shanghai. The chain has spread to every Chinese province and region except Tibet. KFC restaurants have reached 280 Chinese cities. Yum's revenues in China topped $1 billion last year, up from $261 million in 1998.

Elsewhere, KFC opened about 50 new restaurants last year in Britain, another high-growth market for Yum, raising its total chicken outlets to 660. Yum had operating profits of $116 million in Britain and $55 million in Asian markets excluding China last year, with KFC representing 60 percent of the amount.

In the United States, KFC has struggled in a crowded fast-food sector, including burger chains that have added chicken to their menus. KFC's domestic same-store sales have trended mostly downward the past two years.