KFC and Pizza Hut owner Yum to sell stake in China business ahead of spinoff

The owner of the KFC, Pizza Hut and Taco Bell brands also said first-quarter profit topped analysts' targets and raised its forecast for core business operating profit growth to 12 percent for the year from 10 percent. Shares rose 3.9 percent in after-hours trade to $85.75.

KFC and Pizza Hut owner Yum Brands Inc said Chinese investment firm Primavera Capital and an affiliate of Alibaba Group Holding Ltd will buy a stake in Yum China for US$460 million as Yum prepares to spin off the business.