Yum Adds Keith Meister To Board; Warns On EPS Growth, China Same-store Sales

(RTTNews) - Yum! Brands, Inc. (YUM) announced that it is nearing conclusion of its strategic review, including those related to its structure, and intend to communicate the outcome shortly.

The company also announced the appointment of Keith Meister to its Board, effective October 16, 2015. Meister is the founder and Managing Partner of investment fund Corvex Management LP, which holds nearly 5% of company's common stock.

The company also provided an updated outlook for full-year earnings per share and China Division same-store sales. The company noted that sales in China continue to be difficult to forecast due to ongoing volatility and as a result, Yum now estimates fourth quarter China Division same-store sales could range from 0% to 4%, with positive same-store sales growth at KFC and negative same-store sales at Pizza Hut Casual Dining.

For the full year, Yum expects China Division same-store sales to be low-single-digit negative, and China Division operating profit to be about flat to prior year, excluding the impact of foreign exchange.

Yum currently expects incremental foreign exchange headwinds to negatively impact its full-year EPS growth rate by one to two percentage points. As a result, Yum now expects its EPS growth, prior to Special Items, to range from about flat to low-single-digit positive for the full year.