Yum Brands is likely to split its business in China

Greg Reed CEO of Yum said the plan gives the owner of KFC and Pizza Hut "more stability"

For years, the popularity of KFC and Pizza Hut among Chinese consumers make Yum Brands Inc. one of the largest business success in China.

Now Yum tolerate quite failures in China after a series of difficulties for the economy of the Celestial Empire. By the end of next year, Yum China will become a separate, publicly traded franchisee of Yum Brands, the company said. The news came just five days after activist investor who offer such separation join the board of Yum.

Some US companies have made major adjustments in China especially in the advanced technology sector, where increasing concern of the Beijing National Security. Hewlett-Packard Co., for example, earlier this year agreed to sell a majority stake in its Chinese network of local state-controlled enterprises.

Analysts differ in their expectations about the fate of Yum China. Now employs 6,900 restaurants company in China, including 4,900 KFCs, and around the world are 41,000.
Last year revenues of Yum in China remained unchanged at $ 6.9 billion and operating income of $ 713 million, down 8%. The company last week lowered its forecast revenue for the current fiscal year for the second time in two weeks.

The company said it would provide more information about the plan for its development in China's investor conference in December.

Shares reached at Knicks levels since the beginning of the year, price will probably move to the end of the year in a narrow range below $ 75 as investors await more clarity about the future of Yum in China.
E.Dimitrov JrTrader