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Yum Brands Creates Chinese Spinoff

Unable to rebound from scandals, Yum Brands has decided to split into a separate entity in China.

There are about 4,900 KFCs in 1,000 Chinese cities.

By the end of 2016, Yum Brands in China will be no more. Say hello to Yum China.

After several scandals damaged the fast food juggernaut, Yum Brands has struggled to rebuild its reputation in a country formerly in love with its products.

Yum brand KFC had no sooner attempted to clean up controversy over excessive antibiotics in their Chinese restaurants when an undercover video showed meat suppliers mishandling chicken destined for KFC restaurants.

Yum decided to split after investor and CEO of hedge fund Corvex Management Keith Meister joined the board in May. The split will result in two publicly traded, separate companies. Yum China will pay franchise rights to Yum Brands for use of KFC, Pizza Hut and Taco Bell (which isn’t in China yet).

Read More:

  • Yum Brands to spin off China business after food scandals (CNN Money)
  • Yum Brands to Spin Off China Business (Wall Street Journal)
  • Yum Brands to separate China unit amid activist pressure (Reuters)
Liz Leslie

Liz Leslie is a journalist based in Chicago. When she's not writing about food, she's likely eating food. Or dreaming about food.

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