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Yum Brands prepares to separate China business: Bloomberg
[LONDON] Yum Brands Inc is preparing to separate its Chinese and US businesses in a major restructuring of the fast-food group, Bloomberg reported.
Plans to break up the business are advanced and could be announced before the end of the month, Bloomberg said, citing people with knowledge of the matter. Yum Brands appointed activist investor Keith Meister to its board last week, bolstering speculation that the company may spin off its China business.
Meister, who heads hedge fund Corvex Management, has urged Yum to separate its 6,900-restaurant China division, which contributed 57 per cent of the company's overall revenue and 54 per cent of its operating profit in the latest quarter.
Details of the separation have not been finalized, and the parent of KFC, Pizza Hut and Taco Bell could still decide to retain its current structure, Bloomberg said.
Reuters could not immediately reach representatives at Yum for comment outside regular US business hours.