Yum Brands Inc - the sprawling fast-food empire that owns KFC and Pizza Hut - said its board had approved the spinoff of Yum China. Muktesh Pant would resign as CEO of Yum's China division on the completion of the spinoff and will then act as CEO of Yum China.

In other moves, the company said Jonathan Linen would depart from the group's board and audit committee and will become a member of Yum China board. Linen's resignation from the parent company's board and appointment to Yum China's board will be effective on Oct 12.

Yum Brands, which operates more than 7,200 restaurants in China, also announced an increase in the company's dividend. The latest payout represents an 11 percent increase on the company's previous quarterly dividend of $0.46 per share.