Yum! Brands, which is the corporate parent of Taco Bell, KFC, and Pizza Hut, will be spinning off its Chinese business as a separate, publicly traded company. Yum! China will be a franchise of Yum! Brands and run the company’s brands in China. KFC was the first quick service chain in China, and is still the number one foreign restaurant in China. Taco Bell has not yet expanded into China, so Yum! China will have incredible room for growth in that area.
Yum! Brands will continue to operate its restaurant brands in all non-China markets. It spun off the Chinese division as part of a broader corporate effort to structure its management by brand rather than by geographical location. The two Yum! companies will now be free to pursue different strategic options independent from each other, which should work to both of their benefits. Yum! China will be able to take advantage of its strong base of local experts to expand Yum!’s presence in the world’s most populous nation. Yum! Brands plans to turn most of its current restaurants into franchises, which will provide stable income and maximize benefits for shareholders.
Read the full article here: Yum! Brands Announces Intention to Separate into Two Publicly Traded Companies