Losing appeal: A customer walks out of a KFC restaurant in Shanghai. As China’s economy stutters, growing numbers of diners on a budget are tapping into smartphone applications to snap up meal delivery deals, spelling big trouble for fast food chains like Yum’s KFC and Pizza Hut. – Reuters
NEW YORK: Yum! Brands Inc, whose restaurants have been selling crispy chicken in Beijing since 1987, is preparing to separate its battered China business from its US operations following calls from an activist investor, people with knowledge of the matter said.
Plans to break up the business are advanced, according to the people, who asked not to be identified as the information is private. The Louisville, Kentucky-based owner of KFC and Pizza Hut, whose China sales have been hurt by food safety scandals, could announce the separation before the end of the month, the people said.
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