Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 23, 2019

Article Excerpt

YUM CHINA HOLDINGS INC., $42.57, New York symbol YUMC, is China’s largest fast-food operator, with 8,700 outlets, mainly under the KFC and Pizza Hut banners. Yum China was a wholly owned business of Yum! Brands (New York symbol YUM) until November 1, 2016. That’s when the parent company spun it off. With the split, investors received one share of Yum China for each Yum Brands share they held. They won’t have to pay capital gains tax on those shares until they sell them. The company is paying an undisclosed sum for controlling interest in the Huang Ji Huang group. That firm has over 640 casual-dining restaurants in China and other countries. Franchisees operate most of those outlets. Yum China expects to complete the purchase in early 2020. The deal will help Yum China with its goal of expanding to over 10,000 outlets by 2021. As well, the company expects combining certain operations will help cut its costs. OUR RECOMMENDATION: Yum China is a buy. Yum China…