Yum Brands Inc. has found buyers for its Long John Silver’s and A&W restaurant chains. LJS Partners, which was formed by a consortium of franchisee leaders and other investors, will buy Long John Silver’s, Reuters reported. A&W’s buyer is A Great American Brand, formed by a franchisee leader, Reuters said. No terms of the sale were released.
(Reuters) – Yum Brands Inc (YUM.N) has found buyers for its Long John Silver’s and A&W restaurant chains, the world’s second-biggest fast-food company said on Thursday.
Yum said it does not expect the deals to have a material impact on its ongoing earnings or cash flow. Both transactions are expected to close in the fourth quarter.
The Louisville, Kentucky-based company said Long John Silver’s will be acquired by LJS Partners LLC, which it said was formed by a consortium of franchisee leaders and other investors.
A&W’s buyer is A Great American Brand LLC. Yum said that group was formed by a franchisee leader with substantial interests in international A&W restaurants and the National A&W Franchisees Association, representing U.S. A&W restaurant operators.
Shares in Yum were down 3.2 percent at $50.89 amid broad stock market losses following an unsettling outlook from the Federal Reserve and weak data from China that stoked global recession fears. (Reporting by Lisa Baertlein, editing by Gerald E. McCormick)