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Yum! Brands

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Yum! Brands, Inc.
Company typePublic (NYSE: YUM)
IndustryRestaurant
Founded1997 as Tricon Global Restaurants, Inc.
2002 - rename, merger of Tricon and Yorkshire
FounderPepsiCo
Headquarters
Louisville, Kentucky
,
United States US
Area served
Worldwide
Key people
David C. Novak, (Chair & CEO)
Rick Carucci, (CFO)
Sam Su, (Vice Chair & President)
Emil Brolick, (COO)
Anne Byerleine, (Chief People Officer)
RevenueIncrease US$10.8 Billion (FY 2009)[1]
2,187,000,000 United States dollar (2022) Edit this on Wikidata
Increase US$1.10 Billion (FY 2009)[1]
Total assetsIncrease US$7.15 Billion (FY 2009)[2]
Total equityIncrease US$1.02 Billion (FY 2009)[2]
Number of employees
336,000 (as of December 2008)
DivisionsChina
SubsidiariesA&W Restaurants
East Dawning
KFC
Long John Silver's
Pasta Bravo
Pizza Hut
Taco Bell
WingStreet
Yum Restaurant Services Group
Websitewww.yum.com

Yum! Brands, Inc. (NYSE: YUM) or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, Kentucky Fried Chicken, Pizza Hut, Wingstreet, and Long John Silver's restaurants worldwide, and A&W Restaurants (excluding A&W in Canada).

Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units—nearly 38,000 restaurants around the world in more than 110 countries and territories.[3] In 2010, Yum!'s global sales totaled more than US$11 billion.

History

Tricon Global

Yum! was created on October 7, 1997, as Tricon Global Restaurants, Inc. an independent company, as a result of a spin-out from PepsiCo, which owned and franchised the KFC, Pizza Hut and Taco Bell brands worldwide. Because of the company's previous relationship with Pepsi, Yum! Brands has a lifetime contract with PepsiCo, with notable exceptions being the contract of A&W Restaurants with Dr Pepper Snapple Group to be the exclusive restaurant provider of A&W Root Beer, and the contracts of franchisees such as HMSHost and college-operated locations with Coca-Cola which override Yum's lifetime PepsiCo contract, along with some scattered KFC franchises across the United States which continue to maintain Coke fountain rights.

In 2001, KFC started test in Austin, Texas restaurants of "Wing Works" chicken wing line sold with one of a few flavored sauces. Also, KFC hired a consultant to develop a breakfast menu.[4]

Expansion

In March 2002, Tricon announced the acquisition of Lexington, Kentucky,-based Yorkshire Global Restaurants, owner of the Long John Silver's and A&W All-American Food chains and its intention to change the company's name to Yum! Brands, Inc. On May 16, 2002, the name change became effective after a vote during the company's annual shareholders meeting, and on June 17, 2002, Yum! executed a two-for-one stock split. Shortly afterwards, due to Yum!'s lifetime contract with Pepsi, Long John Silver's and A&W Restaurants (both of which previously served Coca-Cola) switched to Pepsi products once their franchise contracts expired, with A&W retaining A&W Root Beer from a separate deal with Dr Pepper Snapple Group.

In 2003, Yum! launched WingStreet as a hybrid combo unit with an exisiting Pizza Hut franchise.[5] The Pasta Bravo concept was acquired in 2003 from Pasta Bravo, Inc. of Aliso Viejo, Calif for $5 million to pair with Pizza Hut.[6] An East Dawning test cafeteria-style restaurant was opened in Shanghai in 2004. After failing, Yum! Brands chose the KFC business model (KFC is the most successful Western chain in China) and found greater success.[7]

As of year-end 2010, more than 20 East Dawning restaurants were in operation.[8] In 2007 and 2008, a thousand WingStreet stores a year were opened. On October 19, 2009, Company president Scott Bergren publicized WingStreet's national launch.[5]

International Growth

The growth of Yum! Brands throughout the United States has slowed from its previous rapid expansion because the chain has saturated most of the domestic market. The future growth of Yum! Brands is targeted mainly at other countries; China in particular has a large population and is enjoying increases in income.[9]

In January 2011, Yum! announced its intentions to divest itself of its Long John Silver's and A&W brands to focus on its core brands of KFC, Pizza Hut and Taco Bell. For the decade leading up to the company's announcement major growth had relied on international expansion and the two chains, with little presence out side the US and Canada, no longer fit in the company's long-term growth plans.[10] The foreign expansion—particularly that of Taco Bell, KFC and Pizza Hut—was cited in the firm's January 18, 2011 announcement of its intention to sell the A&W and Long John Silver's chains. Both of those chains also suffered from poor sales, and had fewer locations compared to the other chains in the Yum! Brands portfolio.[11]

A single Yum! restaurant facility co-branded as Taco Bell and KFC in San Francisco, California
A Taco Bell and a KFC on adjacent lots in Burlington, North Carolina

Corporate

The current chairman and chief executive officer of Yum! Brands is David C. Novak. Novak is a director of J.P. Morgan Chase and became CEO of predecessor firm Tricon Global on January 1, 2000, and chairman of the board on January 1, 2001. He is also a member of the Yum! executive/finance committee.

Since 2006, Yum! Brands has served as the corporate sponsor of the Kentucky Derby.[12]

Brands

See also

Notes

  1. ^ a b Yum! Brands (YUM) annual SEC income statement filing via Wikinvest
  2. ^ a b Yum! Brands (YUM) annual SEC balance sheet filing via Wikinvest
  3. ^ About Yum! Brands - Yum! Brands, Inc
  4. ^ "KFC taps 'Seinfeld' star, starts 'Wing Works' test". Nation's Restaurant News. Lebhar-Friedman. August 6, 2001. Retrieved 2011-01-26.
  5. ^ a b c Cyrek, Christopher (October 20, 2009). "Pizza Hut going after wings market". Dallas Business Journal. Dallas, Texas: American City Business Journals, Inc. Retrieved 2011-01-26. {{cite news}}: More than one of |author= and |last= specified (help)
  6. ^ a b "Yum buys Pasta Bravo rights for P. Hut pairings". Nation's Restaurant News. Lebhar-Friedman. April 14, 2003. Retrieved 2011-01-26.
  7. ^ Adamy, J. (2006-10-20). "One U.S. Chain's Unlikely Goal: Pitching Chinese Food in China". The Wall Street Journal.
  8. ^ Yum! Brands, Inc. 2006 year-end China restaurant counts
  9. ^ Fool on Call: Yum! Brands' Wall of China
  10. ^ "Yum puts A&W, Long John Silver's up for sale". MSNBC. Associated Press. 18 January 2011. Retrieved 20 January 2011.
  11. ^ a b c Yum! Brands Places Long John Silver's and A&W All-American Restaurants for Sale - Jan. 18, 2011
  12. ^ Kentucky Derby including Yum Brands in its name - May 5, 2006
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