Yum! Brands Is Selling Pizza Hut. Investors Should Be Cautiously Optimistic.
The company will focus on growth opportunities within KFC and Taco Bell.
Yum! Brands Is Selling Pizza Hut. Investors Should Be Cautiously Optimistic.
Overview
Yum! Brands (NYSE: YUM) is burning the pizza. The company is selling Pizza Hut in two transactions. First, Pizza Hut outside of mainland China will go to LongRange Capital, a private equity firm. Secondly, Pizza Hut in China will be sold to Yum China. All told, Yum! Brands will net about $2.3 billion from the sales.
The $2.3 billion is an immediate win for the balance sheet. In theory, the plan to sell Pizza Hut and focus on growth opportunities within KFC and Taco Bell is a good one. Both KFC and Taco Bell have healthier unit economics and clearer paths to expanding their global footprint.
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Details
Source
Originally published at www.fool.com.
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