This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yum! to Sell Long John Silver's, A&W

LOUISVILLE, Ky. ( TheStreet) -- Yum! Brands (YUM - Get Report) said Tuesday it put restaurant chains Long John Silver's and A&W All-American Restaurants up for sale as it pushes to expand in international markets.

Yum! said the divestments come as it narrows its focus for long-term growth plans toward greater expansion in China and other international markets while concurrently growing sales at Taco Bell, Pizza Hut and KFC in the U.S.

Investors were pleased with the idea of a slimmer, more focused Yum!, bidding the restaurant operator's shares 2.6% higher to $49.10 in early-afternoon trading. More than 3.2 million shares were in play with just under three hours left in the session, compared with their average daily trading volume of 2.8 million.

Yum! said it was looking for a buyer for LJS and A&W but has yet to find one.

CEO David C. Novak commented that Yum! grew earnings-per-share by 13% over the past ten years, crediting the growth to aggressive expansion in China and other emerging markets , opening an average of nearly four new restaurants outside the U.S. each day.

"We do not believe Long John Silver's and A&W-All American Food restaurants fit into our long-term growth strategy," Novak said. "Accordingly, we have decided to put these two great brands up for sale and we will complete the sale only once the right buyer or buyers have been identified and we can ensure a seamless transition."

Yum! added that it "does not expect the eventual sale to have a material impact to its ongoing earnings or cash flow."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MCD $98.55 -0.44%
SBUX $51.16 -0.62%
YUM $91.33 -0.23%
AAPL $130.96 -1.20%
FB $79.71 -1.00%

Markets

DOW 18,066.84 -165.18 -0.91%
S&P 500 2,109.52 -16.54 -0.78%
NASDAQ 5,039.4840 -49.8780 -0.98%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs