Yum! Brands completes separation of Yum China Holdings

Creates two independent companies

LOUISVILLE, Ky. (Nov. 1, 2016) — Yum! Brands, Inc. today announced that it has completed the separation of Yum China Holdings, Inc. from Yum! Brands, creating two powerful, independent, focused growth companies. Yum China will begin trading “regular way” as an independent company today on the New York Stock Exchange under the ticker symbol “YUMC.

“The successful separation of Yum China marks a major milestone in Yum! Brands’ history,” said Greg Creed, CEO 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.”

Major features of Yum! Brands’ transformation and growth strategy, outlined last month, involve being more focused, franchised (at least 98 percent 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.

“At Yum! Brands, we’re focused on building the world’s most loved, trusted and fastest-growing restaurant brands,” Creed said. “As a ‘pure play’ franchisor, we believe the transformed Yum! Brands is going to deliver long-term sustainable results by being more focused, efficient, growth oriented and collaborative across our brands and with our franchisees.”