Company sharpens focus for long-term growth on continued expansion at
China and Yum! Restaurants International divisions, and building sales
layers and innovation at Taco Bell, Pizza Hut and KFC in U.S.
LOUISVILLE, Ky.--(BUSINESS WIRE)--
Yum! Brands, Inc. (NYSE:YUM) today announced its plans to place its Long
John Silver’s and A&W All-American Food Restaurants for sale, and has
begun a process to identify a buyer. The Company is sharpening its
long-term growth focus on building leading brands in every significant
category in China, driving aggressive international expansion, and
improving its U.S. brand positions by building new dayparts and sales
layers at Taco Bell, Pizza Hut and KFC.
“Over the past decade, Yum! has delivered annual EPS growth of 13
percent, exceeding our 10 percent annual growth target. This has been
driven by aggressively building restaurants in China and Yum!
Restaurants International at a pace of nearly four new restaurants every
day of the year. We do not believe Long John Silver’s and A&W-All
American Food restaurants fit into our long-term growth strategy,” said
David C. Novak, Yum! Brands, Inc. Chairman and Chief Executive Officer.
“Accordingly, we have decided to put these two great brands up for sale
and we will complete the sale only once the right buyer or buyers have
been identified and we can ensure a seamless transition.” The Company
does not expect the eventual sale to have a material impact to its
ongoing earnings or cash flow.
In 1998, when Yum! Brands was spun-off from PepsiCo, 22 percent of its
profits were sourced internationally. Today, about 65 percent of the
Company’s profits are from the China and Yum! Restaurants International
divisions, and the Company expects that percentage to grow to 75 percent
by 2015. In the U.S., Taco Bell accounts for approximately 60 percent of
the Company’s profits, followed by Pizza Hut and KFC. The Long John
Silver’s and A&W All-American Foods Brands account for a total of 1,630
restaurants, all of which are owned and operated by franchisees.
Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest
restaurant company in terms of system restaurants with more than 37,000
restaurants in more than 110 countries and territories. The company is
ranked #216 on the Fortune 500 List, with revenues of nearly $11 billion
in 2009. Four of the company’s restaurant brands – KFC, Pizza Hut, Taco
Bell and Long John Silver’s – are the global leaders of the chicken,
pizza, Mexican–style food categories and quick–service seafood
categories. A&W Restaurants is the longest running quick–service
franchise chain in America. Outside the United States, the Yum! Brands
system opened more than four new restaurants each day of the year,
making it a leader in international retail development. The Company has
consistently been recognized for its reward and recognition culture,
diversity leadership, community giving, and consistent shareholder
returns. In 2007, the Company launched World Hunger Relief, the world’s
largest private sector hunger relief effort to raise awareness,
volunteerism and funds to benefit the United Nations World Food
Programme (WFP) and other hunger relief agencies. To date, this effort
has raised nearly $85 million for WFP and other hunger relief agencies
and is helping to provide approximately 350 million meals, saving the
lives of millions of people in remote corners of the world where hunger
is most prevalent.
Source: Yum! Brands, Inc.
Contact:
Yum! Brands, Inc.
Tim Jerzyk, Senior Vice President Investor
Relations
888-298-6986
or
Amy Sherwood, Vice President
Public Relations
502-874-8200