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UPDATE 1-Yum Brands to combine business units by brands

Wednesday, 20 Nov 2013 | 5:53 PM ET

Nov 20 (Reuters) - Yum Brands Inc said it would combine the U.S. and international divisions of KFC, Pizza Hut and Taco Bell and keep its China and India units separate as part of a reorganization.

The reorganization will be effective from Jan. 1 and beginning fiscal year 2014, the company will report results for KFC, Pizza Hut and Taco Bell and for its China and India divisions.

"We believe that having 100 percent focused brand teams will enable us to more aggressively accelerate growth," Chief Executive David Novak said.

The China and India units will remain separate given their "strategic importance and enormous growth potential", the company said.

Yum is the biggest U.S. restaurant operator in China and that market traditionally accounts for more than half of the company's operating profit.

But sales at restaurants in China have taken a beating since chemical residues were found in chicken from some of its poultry suppliers in China late last year.

The company has also been investing heavily in India.

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