Yum Brands to separate India, China business

 

Bangalore: Yum Brands Inc. said it would combine the US and international divisions of KFC, Pizza Hut and Taco Bell and keep its China and India units separate as part of a reorganization.

The reorganization will be effective from 1 January and beginning fiscal year 2014, the company will report results for KFC, Pizza Hut and Taco Bell and for its China and India divisions.

“We believe that having 100% focused brand teams will enable us to more aggressively accelerate growth,” chief executive David Novak said.

The China and India units will remain separate given their “strategic importance and enormous growth potential”, the company said.

Yum is the biggest US restaurant operator in China and that market traditionally accounts for more than half of the company’s operating profit.

But sales at restaurants in China have taken a beating since chemical residues were found in chicken from some of its poultry suppliers in China late last year.

The company has also been investing heavily in India. 

 

AWANISH SINGH

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