Yum! Brands

Name	Yum! Brands, Inc.
Logo
Type	Public
Traded as
Foundation	1997 as Tricon Global Restaurants, Inc.2002 - rename, merger of Tricon and Yorkshire
Founder	PepsiCo
Location city	Louisville, Kentucky
Location country	United States
Area served	Worldwide
Key people	David C. Novak(Chairman, President & CEO)Samuel Su(Vice Chairman)
Industry	Restaurant
Revenue	US$11.34 Billion (2010)
Operating income	US$1.77 Billion (2010)
Net income	US$1.16 Billion (2010)
Assets	US$8.32 Billion (2010)
Equity	US$1.58 Billion (2010)
Num employees	336,000 (as of December 2008)
Divisions	China
Subsid	A&W; RestaurantsEast DawningKFCLong John Silver'sPasta BravoPizza HutTaco BellWingStreetYum Restaurant Services Group, and Smiley King restaraunt.
Homepage	yum.com

Yum! Brands, Inc. () or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, 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. 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.

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 existing Pizza Hut franchise. The Pasta Bravo concept was acquired in 2003 from Pasta Bravo, Inc. of Aliso Viejo, Calif for $5 million to pair with Pizza Hut. 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.

As of year-end 2010, more than 20 East Dawning restaurants were in operation. 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.

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. With little presence outside the US and Canada, the two chains no longer fit in the company's long-term growth plans. 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.

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.

Brands

A&W; Restaurants (global, limited in Canada)

KFC / Kentucky Fried Chicken (global)

Pizza Hut (global)

Taco Bell (global)

WingStreet (United States, Canada, Germany and Cyprus)

Long John Silver's (United States, Puerto Rico, Taiwan, New Zealand, Australia and Singapore)

Dong Fang Ji Bai (East Dawning) (People's Republic of China)

Wing Works

Pasta Bravo

China Wok (Latin America)

See also

Priszm Income Fund — owns the Canadian franchises for all Yum! divisions except for A&W; (whose Canadian franchises are the property of a separate company) and Dong Fang Ji Bai (which does not operate outside of the People's Republic of China).

Notes

External links

Diners Walk Through One Door and Visit Two Restaurants Article in The New York Times (July 11, 2005) on Yum!'s strategy of multibranding restaurants

Yum Brands and World Hunger Relief Week

Fast food's yummy secret: America's second-biggest fast-food group is as successful as it is little known Special report in The Economist (August 27, 2005) on Yum! Brands

Category:Companies based in Louisville, Kentucky Category:Companies established in 1997 Category:Food companies of the United States Category:Multinational food companies