NEW YORK (TheStreet) -- Shares of Yum! Brands (YUM) - Get Report were increasing in mid-morning trading on Wednesday as its subsidiary Yum China Holdings filed with the SEC to issue 10 million common shares to participants in Yum Brands' incentive plans.
Yum China is being spun off from the Louisville, KY-based owner of KFC, Pizza Hut and Taco Bell. Yum said last year that it would spin off Yum China through a distribution of common shares to shareholders, according to Reuters.
Yum China operates 7,200 restaurants in more than 1,100 cities. On its own, Yum China presents greater risk but could be potentially more rewarding, while Yum Brands without the China unit is likely to be more stable with a higher cash flow, Reuters added.
The China division has been pressured by a weaker Chinese economy, a tainted meat problem and marketing issues.
Yum China has applied to be listed under the symbol "YUMC" on the NYSE, according to the filing.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Yum! Brands as a Hold with a ratings score of C+. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, it also finds weaknesses including weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: