NEW YORK (TheStreet) -- Two big-name billionaire investors have taken a big bite out of fast-food operator Yum! Brands (YUM), and there may be more behind the moves than the prospect of increased sales from China.
On Friday, billionaire investor Dan Loeb told investors in his $17.4 billion Third Point hedge fund he has accumulated a "significant stake" in Yum! Brands, which owns Pizza Hut, KFC and Taco Bell. Loeb cited the prospect of Yum! Bands turning the page in China, specifically with fried chicken joint KFC, after a food supplier scare last year crippled sales and profits.
But Loeb isn't the only hedge fund chief to show interest in a Yum! Brands' turnaround. Just days before the widely watched Ira Sohn Conference, where hedge fund managers will pitch their ideas to crowds, CNBC reported Keith Meister's Corvex Capital has taken a meaningful stake in Yum! Brands.
According to the report, Corvex is now one of Yum! Brands' top five shareholders. Shares of Yum! Brands rose over 5% on the news Friday.
Loeb and Meister may be not be too far off base with their assessment that Yum! Brands shares are undervalued. The involvement of two hedge fund titans could spur internal discussion at the company led by new CEO Greg Creed on how best to more quickly bolster global results. TheStreet reviews three things the billionaire investors may be seeing in Yum! Brands.