China a key destination for US-based companies

Song said that the US quick-service restaurants' successful expansion in China reflects their "strong brand name appeal, solid financial resources and experience in developing new international markets".

"Moreover, they have helped change and shape how younger generations eat, drink and live in modern day China," said Song, adding such expansion will continue as consumer spending continues to increase and as the taste profile of the Chinese continues to evolve.

The past year may not have been a fruitful one for Yum! Brands, as the company saw a decline of about 10 percent in its China earnings for the first three quarters because of safety concerns over its poultry suppliers.

In the study, S&P predicted that the negative trend for Yum! Brands in China will moderate in the coming year and store sales will "turn positive" in 2014 because of the company's commitment to localization in menu initiatives and customer outreach.

As many economists have pointed out, China's slower GDP growth - currently at 7.8 percent compared with its one-time double digit pace - is a good opportunity for the country to reconsider its growth model.

China, as many experts suggest, needs to shift from an investment-led economy toward a consumption-driven model.

The S&P study pointed out that growing domestic demand will likely benefit Western retailers with successful operations in the country.

The expansion of US retailers in key international markets, such as China, is a supporting factor for ratings, because it strengthens the companies' business-risk profile through greater scale and geographical diversity, as well as better competitive advantages, operating efficiency and profitability over time, the S&P report said.

The future of these retailers in China does face some challenges, both among themselves and among China's domestic brands.