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Yum
China, the new entity, will become a franchise of Yum Brands in
Mainland China, the company said.
Yum China will have exclusive rights to three of the company's
brands - KFC, Pizza Hut and Taco Bell - in China, while Yum
Brands will focus on expanding the chains around the world, the
company said on Tuesday.
Upon completion of the separation, Yum Brands will be led by its
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 separation is expected to be completed by the end of 2016
and is intended to be tax free to shareholders.
Yum China has about 6,900 restaurants in over 1,000 cities. The
business remains on track to open about 700 new restaurants in
2015 and is targeting expansion to over 20,000 restaurants in
China in the future, Yum Brands said.
Yum's shares rose nearly 5.3 percent in premarket trading on
Tuesday.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Anil
D'Silva)
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