At a presentation to investors on Wednesday, Yum! Brands CEO Greg Creed confirmed he and his team will hit the road in early October to pitch Yum! China to prospective investors. The company is targeting Oct. 31 for it split from its China business.
In a move initially announced last year, Yum! China be an independent company when the spin-off is completed, holding exclusive rights to use the KFC, Pizza Hut and Taco Bell brands in China, with the opportunity to add or launch new brands in China on its own. Yum! China will pay Yum! Brands a license fee of 3% of its sales for KFC, Pizza Hut and Taco Bell in China.
The remaining company, led by Creed, will continue to expand and develop Taco Bell, KFC and Pizza Hut in the U.S. and internationally outside of China.
"People think we are shedding China, and that is not true at all -- we are at that point where we have an opportunity to drive more value," explained former Yum! Brands chairman and CEO David Novak in a recent interview with TheStreet, adding, "I plan on keeping my stock in both companies, I think we have great upside."