Yum Brands in China
International Management & Negotiations
Yum! Brands in China – A Success Story
Table of Contents 1 Yum! Brands 1 2 Expansion in China 1 3 Yum! Brands vs McDonalds in China 2 4 Main Brands 3 4.1 KFC 3 4.2 Pizza Hut 4 4.3 Taco Bell 6 4.4 Local Brands 7 5 Success Factors 10 5.1 Management 10 5.2 Globalization vs Localisation 10 5.3 Life Style and Leisure Restaurants 11 5.4 Employment 11 5.5 Partnerships 11 5.6 Distribution Network 12 5.7 Expansion & Competition 12 5.8 Local Brands 12 5.9 Past experience in Global Expansion 12 6 Concerns 12 7 References 14 8 Appendix 15 8.1 Yum! Brands’ Organizational Structure 15 8.2 Yum! Brands’ stock price in NYSE 16 8.3 Comparison between KFC and McDonalds 16
Yum! Brands
Yum! Brands, Inc. constitutes a group of companies of 400.000 employees, with global presence, selling its products in 117 countries and territories worldwide. Headquartered in Louisville, Kentucky, Yum! operates more than 37.000 restaurants worldwide and it is considered as the world 's largest fast-food restaurant company. Spin off in 1997 from PepsiCo, Yum! was created as Tricon Global Restaurants, Inc., a company that will own and franchise the KFC, Pizza Hut, and Taco Bell brands worldwide. In 2002, and after some acquisitions that previously have occurred, Tricon changed the company 's name to Yum! Brands, Inc. As per 31/12/11 Yum! Brands had a turnover of $12billion, operating profit of $1.8 billion and net profit of $1.3billion, financial results that rank it #214 on the Fortune 500 List. [16] Its market capitalisation is more than 34 billion dollars and its current stock price in NYSE is just above $70. The chart with the historic prices of the stock is presented in Appendix (Section [8.2]). The increasing price of the stock indicates the successful strategy of Yum! Brands.
Nowadays, the company franchises six brands, having its core brands KFC, Pizza Hut and Taco
Yum! Brands in China – A Success Story
Table of Contents 1 Yum! Brands 1 2 Expansion in China 1 3 Yum! Brands vs McDonalds in China 2 4 Main Brands 3 4.1 KFC 3 4.2 Pizza Hut 4 4.3 Taco Bell 6 4.4 Local Brands 7 5 Success Factors 10 5.1 Management 10 5.2 Globalization vs Localisation 10 5.3 Life Style and Leisure Restaurants 11 5.4 Employment 11 5.5 Partnerships 11 5.6 Distribution Network 12 5.7 Expansion & Competition 12 5.8 Local Brands 12 5.9 Past experience in Global Expansion 12 6 Concerns 12 7 References 14 8 Appendix 15 8.1 Yum! Brands’ Organizational Structure 15 8.2 Yum! Brands’ stock price in NYSE 16 8.3 Comparison between KFC and McDonalds 16
Yum! Brands
Yum! Brands, Inc. constitutes a group of companies of 400.000 employees, with global presence, selling its products in 117 countries and territories worldwide. Headquartered in Louisville, Kentucky, Yum! operates more than 37.000 restaurants worldwide and it is considered as the world 's largest fast-food restaurant company. Spin off in 1997 from PepsiCo, Yum! was created as Tricon Global Restaurants, Inc., a company that will own and franchise the KFC, Pizza Hut, and Taco Bell brands worldwide. In 2002, and after some acquisitions that previously have occurred, Tricon changed the company 's name to Yum! Brands, Inc. As per 31/12/11 Yum! Brands had a turnover of $12billion, operating profit of $1.8 billion and net profit of $1.3billion, financial results that rank it #214 on the Fortune 500 List. [16] Its market capitalisation is more than 34 billion dollars and its current stock price in NYSE is just above $70. The chart with the historic prices of the stock is presented in Appendix (Section [8.2]). The increasing price of the stock indicates the successful strategy of Yum! Brands.
Nowadays, the company franchises six brands, having its core brands KFC, Pizza Hut and Taco
References: [2] Maggie Starvish, “KFC 's Explosive Growth in China”, 2011, Harvard Business School http://hbswk.hbs.edu/item/6704.html [3] William Mellor, "McDonald’s No Match For KFC In China As Colonel Rules Fast Food", Bloomberg, 2011 http://www.bloomberg.com/news/2011-01-26/mcdonald-s-no-match-for-kfc-in-china-where-colonel-sanders-rules-fast-food.html [4]Vivian Wai-yin Kwok, “Yum! Brands Warms To Hot Pot”, 2009, Forbes.com http://www.forbes.com/2009/03/25/yum-little-sheep-markets-equity-china.html [5] China Times, “Localization key to Yum! Brands ' success in China”, 2012 http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1502&MainCatID=15&id=20120316000008 [6] UsaToday, “Yum opens first Taco Bell in China”, 2003 http://www.usatoday.com/money/industries/food/2003-05-23-taco-bell-china_x.htm [9]The Economist, “Taking the hill less climbed”, 2009 http://www.economist.com/node/14770143