Yum Brands Inc has put its Long John Silver's and A&W All-American Food Restaurants up for sale as it focuses on growth in China and other international markets, the company said on Tuesday.
We do not believe Long John Silver's and A&W-All American Food restaurants fit into our long-term growth strategy, David Novak, Yum's chairman and chief executive said in a statement.
Louisville, Kentucky-based Yum said there were 1,630 Long John Silver's and A&W restaurants, all of which are owned and operated by franchisees.
The company said it did not expect the eventual sale to have a material impact on its ongoing earnings or cash flow.
In 1998, when Yum was spun-off from PepsiCo , 22 percent of its profits came from international markets. Today, about 65 percent of the company's profits are from its China and international divisions and Yum expects that percentage to grow to 75 percent by 2015.
Yum shares were up 74 cents, or 1.5 percent, at $48.58 on the New York Stock Exchange in morning trading.
(Reporting by Lisa Baertlein, editing by Maureen Bavdek)