Yum Brands Inc, the parent of KFC, Pizza Hut and Taco Bell, announced on Tuesday [20 October 2015] it is splitting off its China business into a separate company. The spinoff of the $31 billion fast-food group will be named Yum China, and focus on the US company’s huge but struggling restaurant business in the country, the AFP reported. In a statement reply to China Daily, the company said Yum China will become Yum Brands Inc’s franchised dealer, with the ownership of the three major brands of KFC, Pizza Hut and Taco Bell. It is expected to expand the number of its outlets in the country to more than 20,000 from current 6,900…Full Article: ECNS.cn Oct 2015

Key Point

  • From July to September 2015, Yum Brands’ China division accounted for 57% of Yum’ s overall revenue and 54% of the company’s operating profit.

ChinaAg Comments

  • In mid-October 2015, Yum stated it would lower its annual growth forecast in light of lackluster sales.
  • In August 2015, there was speculation that Yum Brands would spin off its KFC division after the CEO of Yum’s KFC Division transitioned to the CEO position of Yum China.
  • In June 2015, Kentucky Fried Chickens comprised 4,889 out of Yum’s 6,853 (or 71%) restaurants in China.
  • KFC is owned by Yum Brands, a company that also manages Taco Bell and Pizza Hut. The company also manages a high-end Italian restaurant in Shanghai called “Atto Primo”.

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