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Yum! Brands

From Alfawiki
Yum! Brands, Inc.
Company typePublic
IndustryFast food
PredecessorPepsiCo (fast food division)
FoundedOctober 6, 1997; 29 years ago (1997-10-06) in Louisville, Kentucky, United States
Headquarters
Louisville, Kentucky
,
United States
Area served
Worldwide (135 countries)
Key people
David Gibbs (CEO), Robert D. Walter (non-executive chairman)
ProductsKFC, Pizza Hut, Taco Bell, Habit Burger & Grill, Banh Shop (minority stake)
Number of employees
34,000 (2020)
Websitewww.yum.com

Yum! Brands, Inc.—commonly referred to as Yum!—is a global American fast food enterprise that originated as a spin-off from PepsiCo following the acquisition of KFC, Pizza Hut, and Taco Bell. In 1997, PepsiCo divested these restaurant chains, consolidating them under the new entity Yum!. The corporation manages KFC, Pizza Hut, Taco Bell, and since 2020, Habit Burger & Grill, with the exception of China, where these brands fall under the management of Yum China. Previously, Yum! owned Long John Silver's and A&W Restaurants. Initially created as Tricon Global Restaurants after separating from PepsiCo, the company rebranded to Yum! in 2002 upon merging with Yorkshire Global Restaurants, the parent company of A&W.

Based in Louisville, Kentucky, Yum! ranks among the largest fast food operators worldwide by system units. In 2016, it oversaw 43,617 outlets—comprising 2,859 company-operated and 40,758 franchised locations—in 135 countries. Reflecting its PepsiCo heritage, Yum! restaurants serve Pepsi beverages rather than Coca-Cola products, except within New Zealand where Coca-Cola is offered.

PepsiCo's entry into quick-service dining

PepsiCo ventured into the restaurant sector in 1977 by acquiring Pizza Hut from its founders Dan and Frank Carney. The following year, it purchased Taco Bell from Glen Bell. In 1986, PepsiCo further expanded its fast food portfolio by buying KFC from R. J. Reynolds to assist with debt related to its Nabisco acquisition.

In 1990, Taco Bell acquired Hot 'n Now but sold it off by 1996. PepsiCo broadened its restaurant holdings by acquiring California Pizza Kitchen in 1992, Chevys Fresh Mex in 1993, D'Angelo Grilled Sandwiches, and the American operations of East Side Mario's. These chains were eventually divested as PepsiCo exited direct restaurant management.

By 1997, PepsiCo sold its restaurant supply division, PepsiCo Food Systems, to Ameriserve Food Distribution Inc., signaling a strategic move away from operating restaurants directly.

Formation of Tricon Global Restaurants

In 1997, Yum! was created as Tricon Global Restaurants, Inc., spun off from PepsiCo's fast food division to serve as the parent company for KFC, Pizza Hut, and Taco Bell. The spin-off was finalized on October 6 with Louisville selected as the corporate headquarters to align with KFC’s base of operations. Meanwhile, Taco Bell and Pizza Hut maintained their headquarters in Irvine, California and Dallas, Texas respectively.

By 2000, Tricon experimented with multi-brand locations through Yorkshire Global Restaurants. By March 2002, this initiative included 83 combined KFC/A&W outlets, six KFC/Long John Silver's locations, and three Taco Bell/Long John Silver's stores—demonstrating an effective expansion model.

In 2001, KFC introduced "Wing Works" test sites in Austin, Texas featuring chicken wings offered with a variety of sauces and considered adding breakfast items to broaden its menu.

Tricon strengthened its portfolio by acquiring A&W and Long John Silver's from Grotech in March 2002 for $320 million ahead of announcing its merger plans.

Transition to Yum! Brands

In March 2002, Yorkshire merged with Tricon Global Restaurants to create Yum! Brands; this merger was completed on May 8 with the name change taking effect on May 22. On June 6 that year, Yum! implemented a two-for-one stock split. Following Yum!’s exclusive lifetime agreement with PepsiCo, Long John Silver's and A&W Restaurants transitioned from Coca-Cola to Pepsi beverages; A&W continued offering its root beer through a separate agreement with Keurig Dr Pepper.

During 2002, Yum! trialed co-branded locations pairing Pizza Hut with Pasta Bravo, Back Yard Burgers, and A&W. To enhance these partnerships, Yum! acquired Pasta Bravo in 2003 for $5 million. That same year saw the launch of WingStreet as a hybrid concept alongside Pizza Hut; by 2007-2008 approximately one thousand WingStreet outlets opened annually. In October 2009, company president Scott Bergren announced WingStreet’s nationwide rollout.

Yum! also expanded into China via East Dawning cafeteria-style restaurants starting with a test outlet in Shanghai in 2004. After initial challenges, adopting KFC’s successful business model—the leading Western brand in China—resulted in improved performance. By September 30, 2007, there were eight East Dawning locations operating.

International expansion

In January 2011, Yum! declared its intention to divest the Long John Silver's and A&W brands, aiming to concentrate on its primary brands: KFC, Pizza Hut, and Taco Bell. These particular chains had a modest international footprint and underperformed in sales relative to Yum!'s leading global brands. By September of the same year, A Great American Brand acquired A&W, while Long John Silver's was sold to LJS Partners LLC.

In May 2011, Yum! agreed to purchase the Chinese hot pot chain Little Sheep for HK$4.56 billion. Following a four-month antitrust investigation by China’s Ministry of Commerce, the acquisition received approval in November 2011.

Yum! furthered its international presence by inaugurating a KFC outlet in Ramallah in 2012, marking the first American fast-food establishment in the West Bank, with plans to introduce Pizza Hut locations as well. In 2013, certain KFC restaurants in China were impacted by a chemical residue controversy, resulting in a 6% decline in sales. That year also saw Yum! open its initial Mongolian restaurant in Ulaanbaatar, with ambitions to launch 15 additional outlets within five years, including Mongolia’s first drive-through service.

The company operates extensively through franchisee Devyani International Limited across markets such as India, Thailand, Nepal, and Nigeria, managing numerous KFC, Pizza Hut, and Taco Bell venues. In October 2013, Yum! celebrated the opening of its 40,000th restaurant in Calangute, Goa, India.

Yum! experimented with a fast-casual concept named KFC Eleven in Louisville during 2013; however, this venture ceased operations by April 2015. That year also saw a $222 million goodwill impairment charge related to the Little Sheep acquisition.

In 2014, Yum! introduced several trial concepts including Super Chix—a chicken-focused eatery inspired by Chick-fil-A—U.S. Taco Co., and Banh Shop. Super Chix launched in Arlington, Texas but was sold back to its original founder and investors by August 2015. Taco Bell rolled out U.S. Taco Co and Urban Tap Room fast-casual concepts aimed at competing with brands like Chipotle.

Early in 2015, hedge funds Third Point Management and Corvex Management took equity stakes in Yum!.

In 2017, Yum! entered into a franchise agreement with local partner Belayab Foods and Franchise PLC to open ten Pizza Hut outlets in Ethiopia.

Yum! acquired The Habit Burger Grill, headquartered in Irvine, for $375 million in January 2020; the acquisition finalized in March that year. The brand was rebranded as Habit Burger & Grill in 2024.

Between 2020 and 2021, Yum! broadened its technological capabilities through acquisitions including omnichannel training firm Heartstyles; Israeli marketing technology provider Tictuk Technologies; AI-driven consumer insights company Kvantum Inc.; and Australian kitchen order management business Dragontail Systems for $69.1 million.

In December 2023, Yum! revealed plans to purchase 218 KFC restaurants from EG Group—their largest franchisee across the UK and Ireland—bringing all EG Group-operated KFC locations under Yum!’s direct control by 2024.

Animal welfare

In 2021, Yum! Brands pledged to transition to sourcing 100% cage-free eggs at most of its outlets by 2026 and extend this commitment globally by 2030.

Corporate

The current chief executive officer of Yum! Brands is David Gibbs, who took over from Greg Creed at the close of 2019. Creed had succeeded David C. Novak, the company’s founder and former CEO of predecessor Tricon Global Restaurants; Novak became chairman in 2001. At the annual general meeting in 2016, Robert D. Walter was appointed non-executive chairman.

Since 2006, Yum! Brands has served as the official corporate sponsor of the Kentucky Derby, enhancing its brand recognition.

On October 20, 2015, Yum! announced a plan to split into two separate publicly traded entities. This strategic decision culminated in the spin-off of Yum China on November 1, 2016, enabling focused growth initiatives distinct from other markets. Notably, Yum China’s operations exclude stores located in Hong Kong, Macau, and Taiwan; these remain franchised through Jardine Restaurant Group under Jardine Matheson.

This corporate realignment aligns with Yum! Brands’ strategy to refine its focus on key markets while optimizing its global operational structure.

Current

The collective outlets of KFC, Taco Bell, and Pizza Hut are commonly known as "Ken-Taco-Huts," highlighting a deliberate co-branding strategy.

Former

See also

External links

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