food and beverage business will be split into a whole is not bad, but on the contrary only in order to better expand the food market will have a second act. This situation is like carrying a cylinder of water difficult, bring two buckets to share, which requires two people to do things, now the power of one person can be completed, so just to make the maximum benefit, in order to make the 1+1 more than 2.

local time on December 10, 2015, yum (YUM.NYSE) introduced the spin off plan held in Plano, Texas, the annual investor conference, that is how the group will be split into two independent companies.

investor conference, yum introduced the spin off transaction will be how to make from a Yum earnings per share growth target for at least 10% year into two companies, each year to about 15% returns to shareholders (including the earnings per share and dividend growth rate) as the goal of the company. In addition, this promise before the partition will be created for shareholders return on capital, yum plans, announced plans to spin off from October 20th until the date of actual business spin off completed (expected by the end of 2016), will give shareholders the $6 billion 200 million return on capital.


conference, yum group confirmed its 2015 full year excluding special items earnings per share in 2014 compared with approximately flat or recorded double-digit growth expectations, announced in 2016 the operating profit outlook, and provide China business in November same store sales, and reiterated that the fourth quarter same store sales Chinese is expected to remain unchanged.

"we will steadily push forward the spin off plan. Yum yum and China as two independent companies, the capital structure will have their own unique growth strategy, investment characteristics and optimization." Yum Group CEO Greg Creed said, "we believe that this transaction would be" a classic case of one plus one is greater than two "effect. The two companies will be based on their respective independence, further stimulate growth potential, and create greater value. By optimizing the capital structure, we will be a family to achieve at least 10% earnings per share growth as the goal of the company into two independent dedicated to bring about 15% of the estimated annual shareholder returns strong company. In addition, we plan to release the capital of up to $6 billion 200 million to shareholders before the completion of the spin off. This reflects our consistent commitment for creating shareholder returns, and the confidence of our development prospects and strong financial capability of long-term yum. The division will provide all shareholders with two unique investment opportunities."

Yum group headquartered in Louisville, Kentucky, has more than 41000 restaurants in more than and 125 countries and regions in the world. Yum 2>