Yum! Brands

Yum! Brands, Inc. (sometimes called simply Yum!) is an American multinational fast food corporation. It is a spin-off of PepsiCo, after they acquired KFC, Pizza Hut, and Taco Bell. PepsiCo divested the brands in 1997, and these consolidated as Yum! The company operates KFC, Pizza Hut, Taco Bell and Habit Burger & Grill since 2020, except in China, where the brands are operated by another company known as Yum China. Yum! previously also owned Long John Silver's and A&W Restaurants. Yum! was founded as Tricon Global Restaurants after PepsiCo finalized the split. In 2002, they took their current name after they merged with Yorkshire Global Restaurants, which at the time was the parent company of A&W, who also spun off an international branch.

Based in Louisville, Kentucky, Yum! is one of the world's largest fast food restaurant companies in terms of system units. In 2016, Yum! had 43,617 restaurants, including 2,859 that were company-owned and 40,758 that were franchised, in 135 nations and territories worldwide.<ref name="Yum!-Brands-AR2015">Template:Cite web</ref> Due to it being a spin-off of PepsiCo, all restaurants owned by this company do not serve Coca-Cola as a soft drink, and instead serve Pepsi except for New Zealand restaurants that serve Coca-Cola.

History

PepsiCo fast food division

The company's history began in 1977, when PepsiCo entered the restaurant business by acquiring Pizza Hut from co-founders Dan and Frank Carney. A year later, PepsiCo purchased Taco Bell from founder Glen Bell.<ref name="ctrib">Template:Cite news</ref> In July 1986, R. J. Reynolds sold KFC to PepsiCo<ref name="ctrib"/> to pay off debt from its recent purchase of Nabisco.

In 1990, Hot 'n Now was acquired via Taco Bell from William Van Domelen,<ref name="lat1">Template:Cite news</ref> but the company was sold in 1996.<ref>Template:Cite web</ref> In 1992, PepsiCo acquired California Pizza Kitchen. In 1993, it acquired Chevys Fresh Mex,<ref>Template:Cite news</ref> D'Angelo Grilled Sandwiches,<ref>Template:Cite news</ref> and the American division of Canadian chain East Side Mario's. These chains were later sold when PepsiCo exited the restaurant business and spun off KFC, Pizza Hut and Taco Bell (see next paragraph).<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite book</ref> In 1997, PepsiCo sold PepsiCo Food Systems restaurant-supply unit to Ameriserve Food Distribution Inc.<ref>Template:Cite news</ref>

Tricon Global Restaurants

File:Tricon Yum Logo.svg

Logo of Tricon

Yum! was created in 1997 as Tricon Global Restaurants, Inc. from PepsiCo's fast food division as the parent corporation of the KFC, Pizza Hut and Taco Bell restaurant companies.<ref>Template:Cite web</ref><ref name=lat2>Template:Cite news</ref> The decision was announced in January and the spin off was effected on October 6.<ref>Template:Cite web</ref> Tricon selected Louisville, also the site of KFC's headquarters, as its corporate headquarters.<ref name=lat2/> Taco Bell and Pizza Hut continued to be headquartered in Irvine, California and Dallas, Texas, respectively.<ref name=lat2/>

In 2000, Tricon Global tested multi-branded locations with Yorkshire Global Restaurants. By March 2002, the Tricon-Yorkshire multibranding test consisted of 83 KFC/A&Ws, six KFC/Long John Silver's and three Taco Bell/Long John Silver's and was considered successful by the companies.<ref name=pr>Template:Cite press release</ref>

In 2001, KFC started test restaurants in Austin, Texas, called "Wing Works", a chicken wing line sold with one of a few flavored sauces. KFC also hired a consultant to develop a breakfast menu.<ref>Template:Cite news</ref>

Tricon bought both A&W and LJS from Grotech in March 2002, shortly before the merger announcement.<ref>Editors, B. (2002, Mar 13). Grotech Portfolio Companies Sold to Tricon; Sale of A&W, Long John Silver's Represents $320 Million. Business Wire</ref>

Yum! Brands

In March 2002, Yorkshire announced it would merge with Tricon Global Restaurants to form Yum! Brands.<ref>Template:Cite web</ref> The merger was finalized on May 8, 2002, and the name change became effective on May 22, 2002.<ref>Template:Cite news</ref> On June 6, 2002, Yum! executed a two-for-one stock split.<ref>Template:Cite news</ref> Shortly afterwards, due to Yum!'s lifetime contract with Pepsi, Long John Silver's and A&W Restaurants (which previously served Coca-Cola products) began switching to Pepsi products, with A&W Restaurants retaining A&W Root Beer from a separate deal with Dr Pepper/Seven Up (now Keurig Dr Pepper).

In 2002, Yum! began testing co-branding locations pairing Pizza Hut with Pasta Bravo, Back Yard Burgers, and A&W.<ref>Template:Cite news</ref> The Pasta Bravo concept was acquired in 2003 from Pasta Bravo, Inc. of Aliso Viejo, California for $5 million to pair with Pizza Hut.<ref name="nrn">Template:Cite news</ref>

In 2003, Yum! launched WingStreet as a hybrid combo unit with an existing Pizza Hut franchise.<ref name="bj">Template:Cite news</ref> 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.<ref name="bj" />

An East Dawning test cafeteria-style restaurant was opened in Shanghai in 2004. After initially failing, Yum! Brands chose the KFC business model (KFC is the most successful Western chain in China) and found greater success.<ref name="wsj_20061020">Template:Cite news</ref> As of September 30, 2007, eight East Dawning restaurants were in operation.<ref>Template:Cite web</ref>

International focus

File:Tacobellkfcrestaurants.jpg

A single Yum! restaurant facility co-branded as Taco Bell and KFC in San Francisco, California

File:Kfc taco bell.jpg

Another cobranded KFC and Taco Bell in Oscoda, Michigan

In January 2011, Yum! announced its intentions to dispose 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.<ref>Template:Cite news</ref> 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 dispose of 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 Long John Silver's chains. A Great American Brand bought A&W, and Long John Silver's was sold to LJS Partners LLC.<ref name="sale">Template:Cite news</ref>

In May 2011, Yum! agreed to purchase Chinese hot pot chain Little Sheep for HK$4.56 billion.<ref>Template:Cite news</ref> The deal spent more than 4 months in antitrust 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.<ref name=cp>Template:Cite news</ref>

In 2012, a KFC opened in Ramallah and became the first American fast food restaurant to operate in the West Bank; a Pizza Hut was also planned.<ref>American fried chicken comes to the Palestinian territories Template:Webarchive, Los Angeles Times, February 4, 2012, access date February 20, 2012</ref>

In 2013, a few KFC locations in China supplied chicken found to contain "excess levels of chemical residue". Yum! had lost 6% of sales from publicity in China as of January 25, 2013.<ref>Template:Cite news</ref>

The company opened its first restaurant in Ulaanbaatar, Mongolia, in May 2013. For Mongolia, KFC was 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.<ref>Template:Cite news</ref> Yum! Brands also opened Taco Bell and Pizza Hut restaurants in newer Target stores.

In India, Thailand, Nepal, and Nigeria, Yum! Brands operates primarily through its largest franchise partner, Devyani International Limited, which manages numerous KFC, Pizza Hut, and Taco Bell outlets across these countries.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>

Yum! Brands opened its 40,000th store in Calangute, Goa, India in October 2013.<ref>Template:Cite news</ref>

In 2013, its KFC subsidiary opened a fast casual version, KFC eleven, test location in Louisville on Bardstown Road. The sole KFC Eleven was closed in April 2015.<ref name=cj>Template:Cite news</ref> 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.<ref name="Hoang2013">Template:Cite web</ref>

In 2014, Yum! launched a number of additional restaurant test concepts, Super Chix, U.S. Taco Co. and Banh Shop.<ref name=nrn0>Template:Cite news</ref> Yum! opened Super Chix in Central Arlington, Texas, a restaurant similar in format to Chick-fil-A, on April 9, 2014.<ref>Template:Cite news</ref> In the summer of 2014, Yum!'s Taco Bell subsidiary launched its U.S. Taco Co and Urban Tap Room fast-casual taco concept restaurant in Huntington Beach, California, to take on fast casual restaurants like Chipotle and Panera.<ref name=time>Template:Cite magazine</ref>

In the first quarter of 2015, Third Point Management and Corvex Management separately acquired an unspecified stake in the company.<ref>Template:Cite news</ref> A second Chix unit opened in May 2015 with additional menu items. Super Chix was sold to founder Nick Ouimet and an investment group in August 2015.<ref name=nrn0/>

In 2017, Yum! announced plans to open 10 Pizza Hut restaurants in Ethiopia, after signing a franchise with the country's Belayab Foods and Franchise PLC.<ref>Template:Cite news</ref>

In January 2020, Yum! announced they were acquiring Irvine, California-based The Habit Burger Grill, for $375 million; the transaction was completed on March 18, 2020.<ref name=wsj1>Template:Cite web</ref><ref>Template:Cite press release</ref> The company was remamed Habit Burger & Grill in 2024.

In 2020 and 2021, Yum! acquired several technology companies. In March 2020, it acquired Heartstyles, an omnichannel training company.<ref>Template:Cite web</ref> In March 2021, it acquired Tictuk Technologies, an Israeli omnichannel ordering and marketing solutions provider,<ref>Template:Cite web</ref> and announced it was acquiring Kvantum Inc., an artificial intelligence-based consumer insights and marketing technology company.<ref>Template:Cite web</ref> In September 2021, Yum! completed the acquisition of Australian kitchen order management and delivery technology company Dragontail Systems for US$69.1 million in cash.<ref>Template:Cite web</ref>

In December 2023, the company announced it will acquire 218 restaurants from its largest franchisee EG Group in the UK and Ireland. After completion in 2024, all of the privately owned EG Group's KFC UK and Ireland businesses will come under Yum's KFC UK and Ireland management.<ref>Template:Cite news</ref>

Corporate

File:Picture 2149LouisvilleArena.jpg

The KFC Yum! Center, Louisville's largest arena

The current CEO of Yum! Brands is David Gibbs. Former CEOs include Greg Creed and David C. Novak.<ref name="Yum!-Brands-Feb-2000-8-K">Template:Cite web</ref> Novak became CEO of predecessor firm Tricon Global on January 1, 2000, and chairman of the board on January 1, 2001.<ref name="Yum!-Brands-Mar-2001-10-K">Template:Cite web</ref> Greg Creed replaced Novak in his role as CEO on January 1, 2015.<ref>Template:Cite web</ref> At the AGM in May 2016, Robert D. Walter became non-executive chairman. At the end of 2019 Greg Creed retired as CEO and the current COO (David Gibbs) was Creed's replacement.<ref>Template:Cite web</ref>

Since 2006, Yum! Brands has served as the corporate sponsor of the Kentucky Derby.<ref>Template:Cite web</ref>

On October 20, 2015, Yum! Brands, Inc., announced that it intended to separate into two independent, publicly traded companies.<ref>"Yum! Brands announced that it intends to separate into two independent, publicly-traded companies." Template:Webarchive Company news release, October 20, 2015.</ref> Yum China was spun off on November 1, 2016.<ref>Template:Cite web</ref> Yum China's operations excluded stores in Hong Kong, Macau and Taiwan, which are franchised from Yum Brands through Jardine Matheson unit Jardine Pacific's Jardine Restaurant Group.

Brands

Current

• KFC
• Pizza Hut
• Taco Bell
• Banh Shop (minority investor)
• Habit Burger & Grill

Former

• A&W Restaurants – Sold to A Great American Brand LLC, a consortium of A&W franchisees, in 2011<ref name=sale />
• D'Angelo Grilled Sandwiches – Sold to Papa Gino's in 1997
• Hot 'n Now – Acquired by PepsiCo in 1990, placed under the Taco Bell branch. Now mostly defunct, with only 1 out of 150 remaining in Sturgis, Michigan, now owned by BTND, LLC the owner of Burger Time
• Long John Silver's – Sold to LJS Partners, Long John Silver's franchisees and other private investors, in 2011<ref name=sale />
• Pasta Bravo
• Super Chix<ref name=nrn0/>
• East Dawning – Spun off into Yum! China in 2016
• Little Sheep – Spun off into Yum! China in 2016

See also

• List of major employers in Louisville, Kentucky
• Yum China
• Restaurant Brands

External links

• Template:Official website