Yum! Brands, Inc. (YUM), together with its subsidiaries, develops, operates, and franchises a worldwide system of both traditional and non-traditional quick service restaurants (QSRs).
YUM has various restaurants in more than 155 countries and territories primarily operating under the four concepts of KFC, Taco Bell, Pizza Hut and Habit Burger & Grill (the ‘Concepts’). The company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories...
Yum! Brands, Inc. (YUM), together with its subsidiaries, develops, operates, and franchises a worldwide system of both traditional and non-traditional quick service restaurants (QSRs).
YUM has various restaurants in more than 155 countries and territories primarily operating under the four concepts of KFC, Taco Bell, Pizza Hut and Habit Burger & Grill (the ‘Concepts’). The company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories, respectively. Habit Burger & Grill is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. As of December 31, 2024, 98% of the company’s Concepts’ units are operated by independent franchisees or licensees under the terms of franchise or license agreements.
KFC
KFC restaurants across the world offer fried and non-fried chicken products such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products marketed under a variety of names.
Taco Bell
Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, quesadillas, salads, nachos and other related items.
Pizza Hut
Pizza Hut specializes in the sale of ready-to-eat pizza products and operates in the delivery, carryout and casual dining segments around the world.
Habit Burger Grill
The Habit Burger & Grill restaurant concept is built around a distinctive and diverse menu that includes chargrilled burgers and sandwiches made-to-order over an open flame and topped with fresh ingredients.
Business Strategy
Through the company’s Recipe for Good Growth, it intends to deliver iconic restaurant brands and consistently drive better customer experiences, improved unit economics and higher rates of growth. Key enablers include accelerated use of digital and technology, increased collaboration and better leverage of the company’s systemwide scale. This is done through a framework of three pillars: being Loved, Trusted and Connected.
Loved: The company grows by delighting customers with craveable food and a distinctive experience. The company innovates and elevate its iconic restaurant brands that people trust and champion, resulting in relevant, easy and distinctive brands.
Loved: The company grows by delighting customers with craveable food and a distinctive experience. The company innovates and elevate its iconic restaurant brands that people trust and champion, resulting in relevant, easy and distinctive brands.
Connected: The company uses its teamwork, technology and global scale to serve every customer, everywhere, anytime. And the company’s commitment to bold restaurant development drives market and franchise unit expansion with strong economics.
The company’s unrivaled culture and talent and leading with smart, heart and courage are key to its success, fueling brand performance and franchise success.
Segments
As of December 31, 2024, YUM consisted of four operating segments:
The KFC Division which includes the company’s worldwide operations of the KFC concept.
The Taco Bell Division which includes the company’s worldwide operations of the Taco Bell concept.
The Pizza Hut Division which includes the company’s worldwide operations of the Pizza Hut concept.
The Habit Burger & Grill Division which includes the company’s worldwide operations of the Habit Burger & Grill concept.
Franchise Agreements
The company is focused on partnering with franchisees who have the commitment, capability and capitalization to grow its Concepts. Franchisees can range in size from individuals owning just one restaurant to large publicly-traded companies. The company has franchise relationships that are particularly important to its business, such as the company’s relationship with Yum China and the company’s relationships with certain other large franchisees.
The company has approximately 1,500 franchisees with whom it has franchise contracts. The company utilizes both store-level franchise and master franchise programs to grow its businesses. Of the company’s over 60,000 franchised units on December 31, 2024, approximately 35% operate under its master franchise programs, including over 15,400 units in mainland China. The remainder of the company’s franchise units operate under store-level franchise agreements. Under master franchise arrangements, the company enters into agreements that allow master franchisees to operate restaurants, as well as sub-franchise restaurants within certain geographic territories.
On October 31, 2016, the company completed the spin-off of its China business into an independent, publicly traded company under the name of Yum China Holdings, Inc. (‘Yum China’). The use by Yum China of certain of the company’s material trademarks and service marks is governed by a master license agreement between Yum Restaurants Consulting (Shanghai) Company Limited, a wholly owned indirect subsidiary of Yum China, and YUM, through YRI China Franchising LLC, a subsidiary of YUM.
Restaurant Operations
Through its Concepts, YUM develops, operates and franchises a worldwide system of both traditional and non-traditional Quick Service Restaurants (‘QSR’). Traditional units can feature dine-in, carryout, drive-thru and delivery services. Non-traditional units include express units that have a more limited menu, usually generate lower sales volumes and operate in non-traditional locations like malls, airports, gasoline service stations, train stations, subways, convenience stores, stadiums, amusement parks and colleges, where a full-scale traditional outlet would not be practical or efficient.
Most restaurants in each Concept offer consumers the ability to dine in, carryout and/or have the Concepts’ food delivered either by store-level personnel or third-party delivery services such as aggregators. In addition, Taco Bell, KFC and Habit Burger & Grill offer a drive-thru option in many stores. Pizza Hut offers a drive-thru option on a much more limited basis.
In 2024, the company accelerated its technology transformation by integrating its digital and technology teams into a unified global team. Additionally, the company has introduced its Byte by Yum! platform, a comprehensive collection of proprietary software as a service and artificial intelligence (‘AI’) driven products that enables easy operations for team members and improved experiences for customers, while consolidating essential systems into a cohesive, easy-to-manage platform. The Byte by Yum! platform includes online and mobile app ordering, point of sale, kitchen and delivery optimization, menu management, inventory and labor management and team member tools. The implementation of Byte by Yum! is also designed to enable a faster and more impactful adoption of AI by YUM and its brands, and offers franchisees leading technology capabilities with advantaged economics made possible by the scale of YUM all with an intention of unlocking new insights and driving profitable sales growth.
The company and its Concepts own numerous registered trademarks. Many of these marks, including its Kentucky Fried Chicken, KFC, Taco Bell, Pizza Hut and The Habit marks, have significant value and material importance to the company’s business.
Supply and Distribution
The company and franchisees of the Concepts are substantial purchasers of a number of food and paper products, equipment and other restaurant supplies.
In the U.S., the company, along with the representatives of its KFC, Taco Bell and Pizza Hut franchisee groups, are members of Restaurant Supply Chain Solutions, LLC (‘RSCS’), a third party which is responsible for purchasing certain restaurant products and equipment. Additionally, Habit Burger & Grill entered into a purchasing agreement with RSCS effective July 31, 2020.
Most food products, paper and packaging supplies, and equipment used in restaurant operations are distributed to individual restaurant units by third-party distribution companies. In the U.S., McLane Foodservice, Inc. is the distributor for the majority of items used in company-owned restaurants and for a substantial number of franchisee restaurants. Outside the U.S., the company and its Concepts’ franchisees primarily use decentralized sourcing and distribution systems involving many different global, regional and local suppliers and distributors. The company’s international franchisees generally select and manage their own third-party suppliers and distributors, subject to its internal standards. All suppliers and distributors are expected to provide products and/or services that comply with all applicable laws, rules and regulations in the state and/or country in which they operate, as well as comply with the company’s internal standards.
History
YUM! Brands, Inc. was founded in 1997. The company was incorporated under the laws of the state of North Carolina in 1997.