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When it comes to China’s multi-billion dollar fast food industry, Yum Brands and McDonald’s are living large, enjoying a combined 38% share of the market in 2015. Yum’s KFC restaurant chain and the Golden Arches have long enjoyed a run of super-sized growth as consumers craved a taste of Americana.

Now, as both these giants eye spinoffs of their mainland operations, analysts are wondering whether the glory days might be over. There are signs that both companies’ absolute dominance of a fast food industry they helped create is starting to slip away as consumers shift to healthier options and Chinese-style food chains — from huoguo (hot pot) to tangbao (steamed dumplings) — proliferate.

These headwinds may explain why investor interest in Yum’s and McDonald’s China operations has been tepid, at least so far. Yum’s plan to sell a minority stake to a Chinese partner seems on hold after bidders objected to the valuation and terms, while McDonald’s has seen a few potential bidders turned off by stringent deal conditions. Yum has reportedly valued a 20% stake in its China business, which it plans to list as a separate unit before the year’s end, at $2 billion. That’s the same price tag McDonald’s has reportedly put on its China franchise rights.

Continue reading at AdAge.com