New York (HedgeCo.Net) Over the course of the last week, two different hedge fund/activist investors announced stakes in fast-food giant YUM Brands (NYSE: YUM). On Friday, it was announced that Third Point has bought in to YUM during the first quarter and cited growth in China as one of the main reasons. YUM owns and operates the Kentucky Fried Chicken, Pizza Hut and the Taco Bell brands. YUM had experienced recent issues in China, but Third Point believes those issues are in the past.
Third Point is a $17.5 billion fund operated by Daniel Loeb. The company didn’t disclose how much was invested in YUM. Third Point is closely followed by investors due to its strong performance over the last 20 years.
YUM was also targeted by Keith Meister’s Corvex Capital according to a CNBC report. The report showed Corvex as one of the top five shareholders in YUM.
Shares of YUM jumped 6.91% during Friday’s trading action as investors followed suit with Third Point and Corvex.