YUM! Brands, Inc. (YUM)
YUM! Brands, Inc. engages in the development, operation, franchising, and licensing of quick service restaurants (QSR). The company has approximately 34,000 units in approximately 100 countries and territories.
The company, through the five concepts of KFC, Pizza Hut, Taco Bell, LJS, and A&W (the Concepts), develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of food items. In all five of its Concepts, the company either operates units or they are operated by independent franchisees or licensees under the terms of franchise or license agreements. The company also owns non-controlling interests in Unconsolidated Affiliates who operate similar to franchisees.
The company, as of December 31, 2005, had approximately 20,000 system units, including approximately 3,000 multi-branded units, in the U.S. As of year-end 2005, approximately 23 percent of U.S. units were operated by the Company, approximately 66 percent by franchisees and approximately 11 percent by licensees.
Segments
The company operates in three segments: the United States, International, and China. The China Division includes mainland China (China), Thailand and KFC Taiwan, and the International Division includes the remainder of international operations.
International
The International Division, based in Dallas, Texas, comprises approximately 11,000 restaurants, primarily KFCs and Pizza Huts, operating in approximately 100 countries outside the U.S. As of year-end 2005, approximately 12 percent of International Division units were operated by the company, approximately 77 percent by franchisees, approximately 2 percent by licensees and approximately 9 percent by Unconsolidated Affiliates. In the year 2005, the company opened approximately 700 new restaurants.
China
The China Division is based in Shanghai, China. The China Division has approximately 2,200 system restaurants, predominately KFCs. As of year-end 2005, approximately 67 percent of China Division units were operated by the company, approximately 9 percent by franchisees and approximately 24 percent by Unconsolidated Affiliates.
Restaurant Concepts
In each Concept, consumers can dine in and/or carry out food. In addition, Taco Bell, KFC, LJS and A&W offer a drive-thru option in various stores. Pizza Hut offers a drive-thru option on a much more limited basis. Pizza Hut and, on a much more limited basis, KFC offers delivery service. Each Concept has proprietary menu items and emphasizes the preparation of food with ingredients as well as recipes and special seasonings to provide food. As of December 31, 2005, there were 3,289 multibranded units in the worldwide system. These units were comprised of 2,548 units offering food products from two of the Concepts (a ‘2n1'), 48 units offering food products from three of the Concepts (a ‘3n1'), and 669 units offering food products from Pizza Hut and WingStreet, a flavored chicken wings concept. The company has developed 24 units offering food products from KFC and Wing Works, another flavored chicken wings concept developed by YUM.
KFC: KFC is based in Louisville, Kentucky. As of year-end 2005, KFC was engaged in the U.S. chicken QSR segment among companies featuring chicken-on-the-bone as their primary product offering. KFC operates in 96 countries and territories throughout the world. As of year-end 2005, KFC had 5,443 units in the U.S., and 8,288 units outside the U.S. Traditional KFC restaurants in the U.S. offer fried chicken-on-the-bone products, primarily marketed under the names Original Recipe and Extra Tasty Crispy. Other principal entree items include chicken sandwiches (including the Snacker and the Twister), Colonel's Crispy Strips, Wings, Popcorn Chicken and, seasonally, Chunky Chicken Pot Pies. KFC restaurants in the U.S. also offer a variety of side items, such as biscuits, mashed potatoes and gravy, coleslaw, corn, and potato wedges, as well as desserts. While many of these products are offered outside of the U.S., international menus are more focused on chicken sandwiches and Colonel's Crispy Strips, and include side items that are suited to local preferences and tastes.
Pizza Hut
Pizza Hut is the restaurant chain in the world specializing in the sale of ready-to-eat pizza products. Pizza Hut is based in Dallas, Texas. As of year-end 2005, Pizza Hut engaged in the U.S. pizza QSR segment. Pizza Hut operates in 91 countries and territories throughout the world. As of year-end 2005, Pizza Hut had 7,566 units in the U.S., and 5,006 units outside of the U.S. Pizza Hut features a variety of pizzas, which may include Pan Pizza, Thin ‘n Crispy, Hand Tossed, Sicilian, Stuffed Crust, Twisted Crust, The Big New Yorker, The Insider, The Chicago Dish and 4forALL. Each of these pizzas is offered with a variety of different toppings. In some restaurants, Pizza Hut also offers breadsticks, pasta, salads and sandwiches. Menu items outside of the U.S. are similar to those offered in the U.S., though pizza toppings are often suited to local preferences and tastes.
Taco Bell
Taco Bell is based in Irvine, California. As of year-end 2005, Taco Bell engaged in the U.S. Mexican QSR segment. Taco Bell operates in 14 countries and territories throughout the world. As of year-end 2005, there were 5,845 Taco Bell units in the U.S., and 245 units outside of the U.S. Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, gorditas, chalupas, quesadillas, salads, nachos and other related items. Additionally, proprietary entrée items include Grilled Stuft Burritos and Border Bowls. Taco Bell units feature a distinctive bell logo on their signage.
LJS
LJS is based in Louisville, Kentucky. As of year-end 2005, LJS engaged in the U.S. seafood QSR segment. LJS operates in 6 countries and territories throughout the world. As of year-end 2005, there were 1,169 LJS units in the U.S., and 34 units outside the U.S. All non-U.S. units are operated by franchisees or licensees. LJS features a variety of seafood items, including meals featuring batter-dipped fish, chicken, shrimp, hushpuppies and portable snack items. LJS units typically feature a distinctive seaside/nautical theme.
A&W
A&W is based in Louisville, Kentucky. A&W operates in 11 countries and territories throughout the world. As of year-end 2005, there were 449 A&W units in the U.S., and 229 units outside the U.S. All non-U.S. units are operated by franchisees or licensees. A&W serves A&W draft Root Beer, and a signature A&W Root Beer float, as well as hot dogs and all-American pure-beef hamburgers.
History
YUM! Brands, Inc. was incorporated under the laws of the state of North Carolina in the year 1997.
Source: ValuEngine |
