Yum! Brands to split into two companies
Yum! China will become a franchisee of Yum! Brands in Mainland China. It will have exclusive rights to three category brands: KFC, Pizza Hut, and Taco Bell.
Yum! China will have an attractive investment profile and significant opportunity for growth. The company is expected to have no significant debt, with substantial financial capacity to invest in its business.
Yum! Brands will focus on expanding the presence and performance of KFC, Pizza Hut and Taco Bell around the world.
Yum! Brands will become more of a “pure play“ franchisor over time, and is targeting having at least 95% of its restaurants owned and operated by franchisees by the end of 2017. ■