Background 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. Yum started as the restaurant division of food and beverage giant PepsiCo. In 1997, facing increasing …show more content…
Mexican QSR segment with 52% market share. The pizza QSR segment is a more crowded market, but Pizza Hut was still the leader with only 14% market share. Long John Silver’s easily led the seafood QSR segment with a 37% market share. A&W was the lone exception among the Yum portfolio, but with only 322 stores it is difficult to gain significant share, and it has been targeted as a failing brand by many analysts. Yum Brands current strategy can be summed up in one word, international. The U.S. QSR market is mature and heavily saturated, so instead of fighting for domestic market share, Yum is primarily focusing on expanding in emerging markets overseas. The primary market focus is , which has quickly become the top profit-producing segment for Yum Brands, with 26% profit growth in 2010. Outside of , Yum is also leveraging its franchising model to open hundreds of new stores, 4 per day in 2010, with little capital investment. One key to Yum’s success internationally is adaptation to the local market. In , you can enjoy spicy KFC chicken and paneer on your Pizza Hut pizza. In , the KFC menu includes local dishes such as congee and spicy tofu chicken rice. Pizza Hut has been branded as an upscale dine-in restaurant, offering items as diverse as scallop croquettes and escargot. Restaurants are also constructed using traditional building designs and restaurant managers are hired locally, instead of being brought from the as competitors have
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
What Steven Ells began with a small taqueria in Denver, Colorado in 1993, one may not have foreseen this venture to become the fastest growing restaurant chain in the last decade. By 2006, Ells’ idea made its initial public offering with 535 restaurants throughout the world. Things were going tremendously well for CMG until late afternoon on October 18, 2012 when Ells finished receiving the company’s third quarter results. While data indicated an overall satisfactory outcome, it was the competition from Yum Brands’ Taco Bell and their recent launch of the Cantina Bell menu that would result in
The saturation of the US QSR industry has caused firms to look outside of US borders for growth opportunities. Europe has been a very attractive market for global expansion due to its large affluent population and that menu options do not have to be completely customized to the region. China and India are also attractive environments but require more modified product offerings to meet local demands. KFC has had to offer options such as burgers, ribs, or fish to meet local cultural demands in their overseas expansion.
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.
Who settle for the concept tend to spot it as a primary trend that has continued for a minimum of 5 years. Wendy's International Inc. (NYSE: WEN) is one of the world's largest restaurant operating and franchising companies, with over 6300 Wendy's franchises in North America and over 300 franchises abroad. Currently Wendy's owns a 14% market share of the fast food, or Quick Service Restaurant (QSR) industry, far behind McDonald's 45% market
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.
From ready-to-eat cereal to convenient meals to wholesome snacks, General Mills is one of the biggest food products manufacturers and competes in growing food categories that are on-trend with consumer tastes around the world. The company markets many well-known brands, such as Haagen Daazs, Yoplait, Betty Crocker, Totinos, and Cheerios, among others. Main rivals include Kellogg, Kraft, Conagra Foods, and Sara Lee. General Mills sells its products in three segments: U.S. retail (63% of net sales), International (25% of net sales), and Bakeries and Foodservices (12% of net sales). In addition, General Mills sells cereals and ice cream through its Cereal Partners Worldwide and Haagen Daazs Japan
This paper reviews the Cash Flow Statements of Yum Brands, Inc., Panera Bread, and Starbucks documented by case study 10-10 in our textbook for the purpose of analyzing financial health based on cash flow data. (Gibson, 2013).
The case study General Mills Inc. - Understanding Financial Statements focuses on the most basic idea of finance analysis. This case is a brief look into the language that is used in the finance world and a start to interaction with auditors. In this case, KPMG LLP, the public accounting firm that was auditing their statements, had sent two opinion letters. The first letter was ensuring that both parties were aware that General Mills had internal control over financial reporting. The second opinion letter stated that to auditor’s knowledge, General Mills had correctly reported its financial statements. The statements given in this case study are known as the four general financial statements. Displayed in the case are the
So, Yum! Brands must know the competitors of the Taco Bell in Malaysia market that offer the similar product that satisfy the same needs and wants of the customer. The Yum! Brands should produce more valuable product for the Taco Bell to winning the customer over the competitor in Malaysia market. The competitor in Malaysia that satisfy the same needs and wants of customer such as KFC, McDonald, Pizza Hut, Burger King and many more. Yum! Brands must to identify all the weakness of their competitors in Malaysia market such as the weakness in their foods, services, packaging and many more. So, Yum! Brands must develop the strategies that is everything in the competitors goods and services in Malaysia can’t to provide to the customer, Taco Bell can provide it. What they can’t and haven’t prepare, Taco Bell can and will have prepared. Taco Bell must know all the marketing strategy that have been use by the competitors, especially the promotional method that they use to market their product. Taco Bell must follow up all the marketing strategy and make some differences
One of the things Pizza Hut’s American website emphasize is their hospitality. On their website they state, “We make people happy. Pizza Hut was built on the belief that pizza night should be special, and we carry that belief into everything we do. With more than 55 years of experience under our belts, we understand how to best serve our customers through tried and true service principles: We create food we’re proud to serve and deliver it fast, with a smile” (Pizza Hut, 2017). They also stated that the service makes the customer fell at home and treats them like they are family.
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