|Type||Public (Spin out)|
|Traded as||NYSE: YUM
S&P 500 Component
|Founded||1997 as Tricon Global Restaurants, Inc.
2002 – rename
|Headquarters||Louisville, Kentucky, United States|
|Key people||David C. Novak
(Chairman and CEO)
Patrick J. Grismer
|Revenue||US$13.084 Billion (2013)1|
|Operating income||US$1.798 Billion (2013)1|
|Net income||US$1.091 Billion (2013)1|
|Total equity||US$2.229 Billion (2013)1|
|Employees||> 1,500,000 (as of December 2013)1|
Yum! Restaurants International
Yum! Restaurants China
Yum! Brands, Inc. or Yum! is an American fast food company. A Fortune 500 corporation, Yum operates the licensed brands Taco Bell, KFC, Pizza Hut, and WingStreet worldwide. Prior to 2011, Yum! also owned Long John Silver's and A&W Restaurants.
Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units—more than 40,000 restaurants around the world in over 125 countries.3 In 2013, Yum!'s global sales totaled more than US$13 billion.
Yum! was created on May 30, 1997,4 as Tricon Global Restaurants, Inc., an independent company resulting from the spin-out of PepsiCo's former fast food division, which owned and franchised the KFC, Pizza Hut and Taco Bell brands worldwide. Because of the company's previous relationship with Pepsi, Yum! Brands holds a lifetime contract with PepsiCo;citation needed notable exceptions include franchisees such as HMSHost and college-operated Pizza Hut locations, which serve Coca-Cola products that override Yum's PepsiCo contract, along with scattered KFC franchises across the United States that continue to maintain Coke fountain rights.
In March 2002, Tricon announced the acquisition of Lexington, Kentucky-based Yorkshire Global Restaurants, owner of the Long John Silver's and A&W Restaurants 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 products) began switching to Pepsi products, 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.5
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 North America, the two chains no longer fit in the company's long-term growth plans.6 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. In September 2011, Yum! announced they had found buyers for the A&W and LJS chains. A Great American Brand LLC will buy A&W, and LJS will be acquired by LJS Partners LLC.7 Yum! Brands had originally purchased the parent company of Long John Silver's and A&W brands in 2003 for $320 million.7
In May 2011, Yum! agreed to purchase mainland Chinese hot pot chain Little Sheep for HK$4.56 billion.8 The deal spent more than 4 months in anti-trust review by the Chinese Ministry of Commerce, to determine whether or not the transaction would result in a monopolistic positioning of Yum! in the country's restaurant industry. The Ministry approved the deal in November 2011, according to Little Sheep representatives.9
In 2013, a few KFC locations in China supplied chicken found to contain "excess levels of chemical residue". Yum! has lost 6% of sales from publicity in China as of January 25.11
The company opened its first restaurant in Ulaanbaatar, Mongolia, in May, 2013. For Mongolia, KFC is the first western fast food to open its doors in the country. The company is planning to open 15 more restaurants in Ulaanbaatar in the next 5 years, including the country's first drive-thru service.12 Yum Brands has also opened Taco Bell and Pizza Hut restaurants in newer Target stores.
In the third quarter of 2013, Yum! Brands had to book an impairment of the goodwill resulting from the takeover of Little Sheep in 2011 in the amount of $222 million, which reduced profits for 2013.
The current chairman and chief executive officer of Yum! Brands is David C. Novak.14 Novak became CEO of predecessor firm Tricon Global on January 1, 2000, and chairman of the board on January 1, 2001.15 He is also a member of the Yum! executive/finance committee.
- A&W Restaurants - sold to a consortium of A&W franchisees, through A Great American Brand LLC 2011
- Long John Silver's - sold to Long John Silver's franchisees and other private investors 2011
- Pasta Bravo - last locations closed in 2011
- Hot 'n Now - 1990 it was acquired by PepsiCo, which placed operations under the Taco Bell branch. Now mostly defunct, with only 5 of 150 restaurants remain
- "Yum! Brands, Annual Report 2013". yum.com. Retrieved July 5, 2014.
- "YUM BRANDS INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 18, 2014.
- "Yum! Brands Inc (YUM) Company Profile". Reuters. Retrieved 2014-10-03.
- 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.
- "Yum puts A&W, Long John Silver's up for sale". MSNBC. Associated Press. 18 January 2011. Retrieved 20 January 2011.
- "Yum Sells 2 Fast-Food Chains". New York Times. 2011-09-22.
- American fried chicken comes to the Palestinian territories, Los Angeles Times, 04-02-2012, access date 20-02-2012
- "Yum Brands' chicken in China contained excessive chemical levels, report says". Business First. 25 January 2013. Retrieved 26 January 2013.
- "Yum! Brands expands to Mongolia, plans more growth". Business First. 29 May 2013. Retrieved 30 May 2013.
- Narayan, Adi (October 23, 2013). "Yum to Invest $10 Billion With Partners in Emerging Markets Push". Bloomberg. Retrieved 19 November 2013.
- "Yum! Brands, Form 8-K, Current Report, Filing Date Feb 10, 2000". secdatabase.com. Retrieved Feb 16, 2013.
- "Yum! Brands, Form 10-K, Annual Report, Filing Date Mar 28, 2001". secdatabase.com. Retrieved Feb 16, 2013.
- Kentucky Derby including Yum Brands in its name – May 5, 2006
- Yum.com – Official Yum! Brands website
- 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
- Yum! Brands SEC Filings
- 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
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