Yum! Brands Is Selling Pizza Hut. Investors Should Be Cautiously Optimistic.
The company will focus on growth opportunities within KFC and Taco Bell.
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.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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