Yum to return $6.2 bn to shareholders before China separation

Yum Brands Inc said it planned to return up to $6.2 billion to shareholders before completing the separation of its China business, which is expected by the end of 2016.

The KFC and Pizza Hut owner, which has been hit by food scandals and marketing missteps in China, said same-restaurant sales in the country fell about 3 per cent in November.

Same-store sales fell 1 per cent at KFC outlets and 9 per cent at Pizza Hut restaurants.

Yum Brands said overall earnings per share, excluding special items, would be flat or grow by a low single-digit per centage in the just-concluded fiscal year, as forecast.

The company said it would discuss further details of the planned separation of its China business at its investor conference in Plano, Texas later on Thursday.

Yum's 6,900-restaurant China division accounted for 54 per cent of the company's overall operating profit in the third quarter.

Yum China's sales at established restaurants have fallen in four of the last five quarters.

Yum's shares were down 0.4 per cent at $73.50 in premarket trading.