Financial Analysis - Yum! Brands and Darden Restaurant

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Yum! Brands Yum! Brands started out as Tricon Global Restaurants in 1997 as the result of a separation from PepsiCo, and became owners of the KFC, Pizza Hut and Taco Bell brand names worldwide. Yum! Brands is now a Fortune 500 company based out of Louisville, Kentucky and the world’s largest restaurant company in the world in terms of system restaurants. With over 37,000 restaurants in over 110 countries, Yum! Brands dominates four sectors of the quick-service food industry: Mexican with the Taco Bell name, chicken with the world famous Kentucky Fried Chicken brand, pizza with the Pizza Hut chain, and seafood with their Long John Silver’s restaurants. Yum! Brands also owns A&W Restaurants, the longest running franchise chain in the…show more content…
Outside the United States, Yum! operates almost 14,000 restaurants in over foreign countries including Russia, Australia, India, South Korea, France and Morocco. The company plans to open about 1,400 international units this year, consistent with the pace of openings over the last five years (Yum! Brand “International”). Competitors In all sectors, Yum!’s biggest competitor is fast-food industry giant McDonald’s Corporation. Similar to Yum!, McDonald's units include company-owned restaurants, franchise royalties, and licensing agreements. Like YUM!, McDonald’s offers a uniform value-priced menu with some geographic variations, making it YUM!’s most significant direct competitor. Although McDonald’s only operates one brand name, it currently operates 32,500 locations in 117 countries. Industry peers include and Burger King Corporation, Darden Restaurants, Wendy’s-Arby’s Group, Domino’s Pizza, Papa John’s, Jack in the Box, and PF Chang’s. Darden Restaurants The first Darden Restaurant opened its doors to the public in 1938 as “The Green Frog,” a 25-people luncheonette in Waycross, Georgia. In 1968, William Darden opened the first Red Lobster Restaurant in Lakeland, Florida. The restaurant was a huge success and in 1970, Darden already had three locations in Florida and two more in the works. Although the company was profitable, it lacked resources to continue expansion, so Darden sold the company to General Mills. By 1975, the Darden had grown into a

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