Yum Brands Inc, which is preparing to spin off its Chinese operations this year, reported fourth-quarter earnings that topped estimates, helped by sales increases at its Taco Bell and KFC chains. Excluding some items, profit was 68 cents a share in the period, the Louisville, Kentucky-based company said in a statement on Wednesday. Analysts had projected 66 cents, the average of estimates compiled by Bloomberg. Same-store sales gained 4 percent at Taco Bell and 3 percent at KFC…Full Article: China Daily Feb 2016

Key Point

  • Approximately 50% of Yum Brands revenue originates from its China-based businesses.

ChinaAg Comments

  • As of December 2015, Yum Brands operated approximately 6,900 restaurants (e.g. KFC, Pizza Hut, etc.) in roughly 1,000 Chinese cities. During the same month, KFC announced it would open its first restaurant in Tibet in January 2016.
  • In late-October 2015, Yum Brands announced it would split off its Chinese division into a separate company.
  • 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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