Yum Brands (NYSE:YUM) rose on Friday after the restaurant chain operator appointed activist investor Keith Meister to its board, raising bets the company may spin off its China business.
Shares rose 1.7% to $70.40 at 9:52 a.m. in New York, paring losses over the past three months to 21%.
Meister is heading hedge fund Corvex Management. He has urged Yum to separate its 6,900-restaurant China division, which contributed 57% of the company's overall revenue and 54% of its operating profit in the latest quarter.
Meister's appointment is effective Friday, the Louisville, Kentucky-based company said in a statement late on Thursday.
One of Yum’s largest shareholders, Corvex holds nearly 5% of the company’s common stock.
The parent of KFC, Pizza Hut and Taco Bell said its board and management are close to finishing their review of strategic options, including those related to the company's structure and would shortly communicate the outcome.
"We have had a constructive dialogue with the board and management over the last several months," Meister was quoted in the statement as saying.
"I look forward to working with the board and management to expeditiously finalize a plan that we believe can deliver that value to shareholders."
Yum also trimmed its 2015 adjusted profit forecast, pointing to volatility in China and pressure from the strong U.S. dollar.