Investing.com -- Shares in Yum! Brands Inc (NYSE:YUM) rose more than 2% in after-hours trading after one of the world's largest restaurant chains shuffled its executive team on Tuesday afternoon by replacing the head of its fledgling China division.
Yum! Brands, the parent company of KFC, Pizza Hut and Taco Bell, announced on Tuesday that it has appointed longtime executive Micky Pant as the CEO of its China division, replacing Sam Su, who is entering retirement. In January, 2014, Pant became the CEO of KFC after previously spending five years as the company's head of global branding. Before joining YUM in 2005, Pant spent 10 years at Reebok in a variety of positions, including Global Chief Marketing Officer.
"Micky has been one of our most effective and visionary leaders at YUM for the past decade. He is one of the finest brand builders in the business with an unparalleled ability to understand consumer insights and to pursue strategies that build trust and loyalty," Yum! Brands CEO Greg Creed said in a statement. "At the same time, he is a culture champion and world-class business executive, who knows how to run and grow profitable businesses and attract world-class talent.
Su, 63, became chairman and CEO of Yum! in May, 2010, after being appointed president of the company's China division in 1997. Yum! is the leading retail developer in China with more than 6,700 restaurants in over 1,000 cities, while KFC is the number one foreign brand in China with more than 4,800 restaurants in over 1,000 cities, according to the company's website.
“Sam Su is a restaurant industry pioneer in China, having established KFC and Pizza Hut as global powerhouses in the world’s fastest growing economy. While we respect and support his decision to retire after a long and successful career with YUM, we are grateful he has built a strong leadership team to carry on and leverage the unprecedented growth opportunity that China presents," Creed added.
During the first quarter, Yum China's revenues fell 9% on a year-over-year basis to $1.26 billion, extending losses from the previous two quarters. Analysts remained concerned that the appeal of KFC and Pizza Hut among Chinese customers will continue to wane as the novelty of the restaurants throughout the world's second-largest economy diminishes.
Shares in Yum! Brands gained 1.80 or 2.14% in after-hours trading to $84.20.