In fact, Yum China's separation from its parent company looks to be a part of the expansion strategy for China.

"At separation, we will be operating a highly cash-generative business, with no external debt and ample cash on hand. This will enable us to invest in new restaurants, digital engagement and our delivery network, providing job opportunities to thousands more people across the country," said Yum China CEO Micky Pant in the statement.

Consumers from the younger generation are evidently the main target for these two companies. KFC and McDonald's have abandoned using cartoon mascots and have instead turned to celebrities to draw attention.

In June, McDonald's collaborated with Kris Wu, a celebrity who is often likened to the Justin Bieber of China because of the controversies he has been involved in.

The 27-year-old actor and singer had in 2016 overshadowed famous actress Fan Bingbing as the second most valuable celebrity in China in terms of commercial value, according to Chinese tech giant Tencent. Last year, Wu also became the first non-British face in the history of Burberry to don the luxury brand's signature trench coat alongside the likes of Eddie Redmayne and Romeo Beckham.

But KFC would not be outdone. Over the past 13 months, the brand has collaborated with four celebrities, including boy band TFBoys which helped to promote its black burgers. Before Wat took over, the brand had never partnered with celebrities as the brand's ambassador. Its key marketing visual in China was the blue and red chicken that had replaced the iconic image of KFC founder Colonel Sanders.

"It's not all about sales, though we are pretty satisfied with the figures," said Wat, in response to the celebrity endorsement deals initiated by her since she took over the helm two years ago.

"The biggest challenge today is keeping up with the ever-changing demands of consumers. To be old is an honor. But to be outdated is dangerous."

Contact the writer at [email protected]