Sales in China may be hard to forecast, it says in estimating that same-store sales for Q4 could range for 0% to 4% (positive at KFC, negative growth at Pizza Hut). “This is a company with multiple avenues for unlocking significant long-term value, and I look forward to working with the Board and management to expeditiously finalise a plan that we believe can deliver that value to shareholders”, Meister said in a statement”.
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The company also named Keith Meister to its board.
KBP Foods announced this week it closed its $20 million acquisition of Yum Brands Inc. restaurants in and around Chicago. Garrison will succeed outgoing CEO Ronald M. DeFeo, who will continue to serve as Executive Chairman of the Company through December 31, 2015.
Corvex, which owns almost 5% of Yum, has previously called for the company to split off its China operations, arguing that the company could essentially franchise all of China.
Yum! Brands, Inc. (NYSE:YUM): On Thursday heightened volatility was witnessed in Yum!
Mr. Meister, a Carl Icahn disciple, is part of activist shareholder Corvex Management LP, which was bankrolled partly by about $1 billion from George Soros.
For the year, Yum expects the China division’s same-restaurant sales to be down in the low-single-digit percentages. Meister’s appointment is effective October 16. The company will also begin a monthly reporting of same-store sales to china henceforth.
Compared to our outlook as of our second-quarter earnings release, we now expect incremental foreign exchange headwinds to negatively impact our full-year EPS growth rate by one to two percentage points. Estimated same-store sales for October will be released November. 12.
With the election of Mr. Meister, the Yum! Judging by the stock price hike on Thursday, it seems his sentiments would echo with those of many others. The Company operates in six segments: YUM Restaurants China (China or China Division), YUM Restaurants global (YRI or worldwide Division), Taco Bell US, KFC USA, Pizza Hut US and YUM Restaurants India (India or India Division). The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Brands in a report on Wednesday, July 15th. Brands launches world hunger relief effort with global spokesperson Christina Aguilera in new public service announcement September 18, 2015 Yum! Brands to separate its China division, which consists of 6,900 restaurants, from the company.
Fast food restaurant chains operator Yum!
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Many analysts believe the Meister appointment will lead to a structural change at Yum. The stock fell almost 19 percent in one day last week after Yum announced disappointing quarterly earnings due to that China performance. BTIG Analyst Peter Saleh said that Yum could increase shareholder value by borrowing ore money and buying back shares.
