Yum says China business gaining momentum

Yum Brands Inc - which owns the KFC, Taco Bell and Pizza Hut brands - said on Wednesday its China business was gaining momentum, boosting its shares as it prepares to spin off its key Chinese unit in the fall.

"Our China division is off to a good start in the third quarter for both KFC and Pizza Hut Casual Dining, including a return to positive same-store sales at Pizza Hut Casual Dining in recent weeks," according to Chief Executive Greg Creed.

China KFC restaurants, the majority of the 7,246 stores in the division, had a 3 percent rise in same-store sales in the second quarter, while the smaller and more upscale Pizza Hut Casual Dining chain posted a drop of 11 percent.