Yum Brands is scheduled to spin off its China division on October 31. The company announced lower than expected revenue for the third quarter of this year. Its China division also showed a declining trend. The company said its revenue has been negatively impacted by the ongoing South China Sea dispute.

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Yum Brands CEO Greg Creed said that the company's China division performed well in the initial six weeks of the quarter. However, in the second half of the quarter, it faced a tougher environment on account of the Permanent Court of Arbitration's ruling on the South China Sea row. The company claims that the court ruling led to protests and general "negative sentiments against a few international companies with well-known Western brands."

Creed stated that the negative impact was short-living and started dispelling through the months of August and September. The company also stated that despite the protests, the Pizza Hut casual dining segment showed continually improving performance.

Yum Brands also confirmed its plans for its China division. The spinoff will be completed by the end of October. Post the spinoff, Yum China Holdings will be listed on the New York Stock Exchange. Its ticker will be YUMC, and the trading will commence from November 1.

The company reported a 1 percent decline in its store sales in China. The figure takes into account the stores which have been opened for at least one year. Yum Brands said that had it not been the dispute, its China division would have posted its fifth consecutive quarter of positive same store growth. Yum Brands operates popular chains such as Taco Bell and KFC. 

TagsYum! Brands, KFC, Taco Bell