CHAPTER 23
Spin-Offs
Yum! Brands, the parent company of Taco Bell, KFC, and Pizza Hut, delivered significant long-term shareholder value from the time it was spun off from PepsiCo in 1997 until the end of 2012.
Yum! Brands (YUM) delivered an impressive 954% cumulative total return to shareholders versus a 99% total return for the S&P 500. The firm’s operations in China contributed significantly to this growth. YUM management made an early and aggressive bet on the Chinese market, and this investment drove spectacular growth in China and for all of Yum! Brands. In 1997, YUM’s Chinese operations had fewer than 200 restaurants and less than $20 million in operating profit. By the end of 2012, Yum China had more than 5,700 restaurants and slightly ...
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