Statistics And Facts On Yum ! Brands

Yum Brands Incorporated is the world’s largest fast-food, or quick-service restaurant (QSR), company in terms of restaurants, which numbered over 37,000 at the end of 2010. It currently operates five restaurant chains, but by the end of 2011, that number will decrease to three: KFC, Pizza Hut, and Taco Bell. The remaining two chains, A&W and Long John Silver’s, will be sold in the 4th quarter of 2011 to companies formed by their franchise holders. As of November, 2011, Yum is in the process of purchasing a Chinese hot pot chain, Little Sheep. It has received government approval and is awaiting shareholder approval.

In 2016 the majority of Yum shares are held by U.S.-based institutional investors including Vanguard Group, Corvex Management and State Street Corporation”. (Wong, 2016) The idea was to provide the company with better access to capital markets and to attract investors willing to pay for a piece of this lucrative pie. This fast food chain at the time had “17,000 outlets and more than $900 million cash on hand”. In September of 2016, yum sold a combined $460 million stake to Alibaba affiliate. A Beijing-based investment firm founded by former

Yum! brands, Inc, is one of the largest and most popular restaurant chain across the globe. It is based in Louisville Kentucky operating approximately 41000 restaurants in 125 countries and territories of which Taco bell, Pizza Hut, KFC, Long John Silver man and A&W chains are their brands since the spin-off in1997 when those brands were transferred from PepsiCo to Tricon company and later Yum! changed their name from Tricon to Yum in 2002. A&W and Long silver man are no longer subsidiaries of yum since 2011 as Yum focused on their 3 main brands kfc, taco bell and pizza hut and have acquired little sheep and east downing as their new subsidiaries. Yum! Generates revenue mainly from their food products like chicken, pizza and Mexican grilled

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

Brands, Inc. owns three of the world’s best known fast-food franchises, which are Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut. With a multi-branding strategy, a firm can combine its brands into the same location in order to increase sales and improve operating efficiency.

The future of any firm company lies in its strategies and alignment to the environmental situation for sustainable profitability. In the restaurant industry, MacDonald’s corporation has developed specific strategies that have made it become the pacesetter for other companies. As the industry becomes more competitive, Macdonald’s corporation needs to balance its business-level strategies and corporate-level strategies. This paper analyses the business-level and corporate strategies adopted by MacDonald’s corporations. An analysis for Macdonald’s Competitive Environment will feature the Yum Brands in a bid to compare the performance on Slow-cycle and Fast-cycle Markets.

One thing that the company is doing to address the issue introducing a new line of products that will fit the wellness market. The new products will include electrolyte drops that will help consumers refill their electrolytes in their bodies, and there would also be new wellness supplements products. Mr. Silk, whom is the former president of National Foods had this to say about the new line “Our hope is to build a broader, more compelling, more relevant relationship with consumers”

The quick service restaurant (QSR) industry, also known as the fast food industry, consists of a large variety of restaurant types, including but not limited to ice cream parlors, fast food restaurants, pizza parlors, coffee shops. With all of these different types of eateries, the QSR industry makes up a massive section of small businesses in America. This means that the market size is large, and that there are not restrictive barriers to entry. Some of the giants in the fast food industry are McDonald’s (MCD), Starbucks (SBUX), and Yum Brands (YUM). While McDonald’s and Starbucks operate under only one brand name, Yum Brands consists of multiple fast food restaurant brands such as KFC, Taco Bell,

operates several fast food brands in Australia. KFC is the major brand that Yum runs. The main product of KFC is made by chicken meat. Therefore, the strength and the weakness of KFC are obviously. People who like chicken meat will highly be attracted by KFC. However, it gives customer who like fast food a limited choice. Just use the one kind of meat will make the brand to be more professional. But it also will narrow its potential markets.

Headquartered in United States of America (USA), McDonalds is known as the emblem to globalization with their successful worldwide franchises. McDonalds are a leader in the fast food industry. They have served over 68 million customers daily (Burger Business, 2012). McDonalds have around 35 000 restaurants worldwide, with 1.9 million employees working under their majestic corporation. Furthermore, 80% of their restaurants are franchised (McDonalds, 2014). Forbes (2013), ranked McDonalds #6 in the world’s most valuable brands. With a brand value of US$39.4 billion and US$88.3 billion of revenue, McDonalds topped the restaurant industry in the list. Now, how did McDonalds came about this success? Entrepreneur Ray Kroc bought over McDonalds in 1954 from the McDonalds brothers that saw the growth of the successful business (McDonalds, 2014). Ever since then, McDonalds had been the name on everyone’s lips when talked about scrumptious, tender, mouth-watering foods. McDonalds stated, “By 1958, McDonald’s had sold its 100 millionth hamburger.”. It was a success like no other. McDonalds were one of the first to bring the concept of fast-food in the food industry at the early era of 50s. It catered to its most famous menus – Filet O Fish, Big Mac and Egg McMuffin.

As mention before, Restaurant Brands International is a merger company that contains Burger King, a coffee shop and a restaurant called Tim Hortons. Since it was a merger that occurred in 2014, there isn’t much info for the company; however, since Burger King has been almost as old as McDonalds so much of the info will come from Burger King. Burger King is practically the same as McDonalds created in 1950s yet a few years later after its competitor was born. The main difference of how it was created was that Burger King started off like a stove and that name of the stove was named Insta-Boiler.

Kentucky Fried Chicken (KFC) is a popular fast food chicken restaurant chain around the world. (Bell, Shelman, 2011) It is one of the subsidiary of Yum Brand. This company also operates the Pizza Hut and Taco Bell. (Yum! Brands, Inc, 2016) KFC was founded by Harland Sanders in 1952. (Bell, Shelman, 2011) Sanders was successful in creating the brand, even the logo of KFC brand is the portrait of him. He became a notable figure in American history thanks to his great contribution on creating KFC brand. Nowadays, KFC becomes more and more popular, the sales ranking of KFC was the 11th among the worldwide restaurant brands. (The QSR 50, 2015) The sales of KFC in 2014 was 4200 million dollars. (Details in Appendix 1) It means KFC has a large quantities of consumption needs. Actually, KFC has 14,577 restaurants around the world and 70% of them are located outside America (Yum Brand Annual Report, 2015). The restaurant profit was increased year by year from 2013 to 2015. (Details in Appendix 2) Therefore, it is potential to enlarge the customer base by analyzing consumer behaviors.

KFC sells its products in different deals for example KFC’s Signature Taste, KFC’s Streetwise Menu, Meals for Family etc. Its main products which it sells under the mentioned deals are all the fast food snacks which include Burgers, Rolls, Roasted Chicken pieces and Fries.

Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis

Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries