Yum Brands Plans To Spinoff China Business Into Its Own Publicly Traded Company

Yum Brands Splitting off China Business

Yum Brands Inc is planning to take its China business and spin if off into its own publicly traded company.

Yum China, the new entity, will become a franchisee of Yum Brands in Mainland China, the company said.

The new company will have exclusive rights to the organization’s various fast food chains which includes KFC, Pizza Hut and Taco Bell.

Yum Brands says it will use the split to focus on expanding the chain’s locations around the world.

Yum Brands will be led by current Chief Executive Greg Creed and Yum China will be led by Micky Pant, who was named the CEO of the China business in August.

The split is expected to be tax-free for shareholders and will be completed by the end of 2016.

Yum China currently operates approximately 6,900 restaurants in over 1,000 cities. The company is on track to launch 700 new restaurants in 2015. Yum plans to open 20,000 locations throughout China.

Yum’s shares rose nearly 5.3 percent in premarket trading on Tuesday following news of the split.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.