He notes that the remaining HoldCo will be a 98% franchised, asset light business in the quick service food industry.
Meister says the China co is a different story as 7,500 restaurants (KFC, Pizza Hut) in China gives them a huge advantage as they were first to move and have become the dominant player there in the QSR space and they can now go into tier 2 and tier 3 cities. He acknowledges that it will be a volatile ride, but says it can be an 'up and to the right' chart over time.
He argues it should trade at 10-12x EBITDA after spin-off, but acknowledged it could start trading around 8x which would basically be trough earnings. "The market's not gonna make it easy to own YUM China, but that's where I think the best return will be."
He feels the remaining HoldCo will trade more like an annuity, with smoother returns.
On shareholder activism, Meister says that these types of investors are simply trying to buy good businesses, help make positive changes, and acting like an owner in the public markets.
Meister still owns Pandora (P). When asked if they're going to sell themselves, he said he didn't know. He compared the company to competitor Spotify and notes the gap in valuation as one is private and one is public. He argues that music is so core to many tech players these days (Apple, Amazon, etc) and he says "so it's a hugely valuable piece of property for someone who wants to win."
He concedes the streaming business is a commodity business, but argues that Pandora isn't due to the built up userbase as an asset.
We'll post up the video of the interview once it's released. Be sure to also check out CNBC's