Ealier this week, Yum brands Inc. announced that it has completed the separation of Yum China Holdings, Inc. from Yum! Brands, creating two powerful, independent, focused growth companies. Yum China has begun trading “regular way” as an independent company on the New York Stock Exchange (NYSE) under the ticker symbol “YUMC.”
“The successful separation of Yum China marks a major milestone in Yum! Brands’ history,” said Greg Creed, Chief Executive Officer of Yum! Brands. “We’ve established two powerful, independent companies that are each well capitalized with long runways for growth and value creation. We couldn’t be more excited about what the future holds for both companies.”
Additional Details on Yum Brands China Separation
As it executes the transformation outlined last month, Yum! Brands will be in a strong position to maximize the potential of its three iconic KFC, Pizza Hut and Taco Bell brands around the world. Major features of Yum! Brands’ transformation and growth strategy involve being more focused, franchised (at least 98% by fiscal year ending 2018) and efficient. In 2016, Yum! Brands optimized its capital structure, and going forward the Company expects to become capital light with improved cash flow and laser-like focus on its key strategies to drive same-store sales and new unit growth worldwide.
With the separation of the China business complete, Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. Yum China has exclusive rights in mainland China to KFC, China’s leading quick-service restaurant concept, Pizza Hut, the leading casual dining brand, and Taco Bell, which is expanding globally and opening in China in 2016. It also owns the Little Sheep and East Dawning concepts. Yum China has more than 7,300 restaurants and more than 400,000 employees in over 1,100 cities, and generated over $8 billion in system sales in 2015.