Matthew Waterman
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Matthew Waterman in Brand Power,

Yum! Brands Separates From It's Chinese Operations

Yum! Brands (YUM) is the owner of Taco Bell, Pizza Hut, and KFC. For a long time the company saw great growth in China, but they reached a point where that tapered off and have been seeing year over year declines for three years in sales now. They have spun off the part of their business that operates in China.

The sales problems were related to quality assurance issues that they had been having. Workers at a Chinese factory were caught using expired meat, and the public has acquired a suspicious view of their products. Some believe that the company is using "Mutant Chickens".

The two businesses will run independently of each other. Yum! Brands is hoping that they can get their reputation back under control this way.

Yum! Closed down 28 cents on Friday to $72.89 per share.