Yum's Divestment Should Prove Supportive Of International Ambitions

US-based fast food chain Yum! Brands has agreed to offload its Long John Silver's restaurants to LJS Partners and its A&W All-American Food chain to the National A&W Franchisees Association and A Great American Brand for undisclosed prices. The move to divest two of its domestic brands comes at a challenging time for the US consumer market and demonstrates its commitment to international markets such as China. Given the lucrative prospects on offer in emerging markets (EMs) and the hardly inspiring opportunities in the US, a strategy to gradually trim down its reliance on the US should prove value-enhancing for Yum.

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