Here’s Why These Stocks Are Trending on Friday

Yum! Brands Sells Part of its China division

Yum! Brands, Inc. (NYSE:YUM) is in the spotlight today after the restaurant chain agreed to sell part of its China division to Primavera Capital, a China-based global private equity firm, and Ant Financial Services Group, an entity that Alibaba Group Holding Ltd (NYSE:BABA) holds a substantial economic interest in. According to the terms, the two entities will invest $460 million in Yum! China concurrent with the completion of Yum! China’s spin-off from its parent company, which should occur on October 31. The move helps Alibaba further diversify its economic exposure and raises more money for Yum! Brands. A total of 46 funds tracked by our team owned shares of Yum! Brands, Inc. (NYSE:YUM) and 69 had a bullish position in Alibaba Group Holding Ltd (NYSE:BABA) at the end of June.

PE Firms Join Hands With Chinese Firms for McDonald’s Asian Assets

McDonald’s Corporation (NYSE:MCD) is in the headlines today after Reuters reported that the private equity firms TPG and Carlyle have joined up with two separate Chinese companies to bid for some of McDonald’s restaurants in Hong Kong and China. Carlyle is working with CITIC, while TPG is combining forces with Beijing Capital Agribusiness Group. More participating entities is always good news for McDonald’s. The sale of some of McDonald’s Chinese assets is expected to raise $2 billion to $3 billion. At the end of June, 63 funds from our database had a bullish position in McDonald’s Corporation (NYSE:MCD) at the end of June, down by 20 funds from the previous quarter.

Disclosure: None