Yum! Brands, the owner of KFC, Pizza Hut and Taco Bell, is preparing to separate its Chinese and US businesses in a major restructuring of the $31 billion fast-food group.
According to a report from Bloomberg citing people with knowledge of the matter, plans to break up the business are advanced and could be announced before the end of the month.
The news follows a less-than-flattering quarterly earnings report released after market close on October 6, which saw the company’s share price tank by more than 20% over the next two sessions of trade.
Yum! announced that sales at its 4,889 China-based KFC outlets rose by only 3% year-on-year, with those for its 1,705 Pizza Hut restaurants faring even worse, declining 1% over the same time period.
From this year’s high of $95.90 struck on May 20, shares in Yum! listed on the NYSE have slide by 25.21%. Year-to-date they have fallen by a smaller 1.55%.
You can read more at Bloomberg.