Yum! Brands, Inc. (NYSE: YUM) or Yum! is a Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, Wingstreet, and Long John Silver's restaurants worldwide, and A&W Restaurants (excluding A&W in Canada).
Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units—nearly 37,000 restaurants around the world in more than 110 countries and territories. In 2009, Yum!'s global sales totaled nearly US$11 billion.
Yum! was created on October 7, 1997, as Tricon Global Restaurants, Inc. an independent company, as a result of a spin-out from PepsiCo, which owned and franchised the KFC, Pizza Hut and Taco Bell brands worldwide. Because of the company's previous relationship with Pepsi, Yum! Brands has a lifetime contract with PepsiCo, with notable exceptions being the contract of A&W Restaurants with Dr Pepper Snapple Group to be the exclusive restaurant provider of A&W Root Beer, and the contracts of franchisees such as HMSHost and college-operated locations with Coca-Cola which override Yum's lifetime PepsiCo contract, along with some scattered KFC franchises across the United States which continue to maintain Coke fountain rights.
Yum! Chairman & CEO David C. Novak is a director of J.P. Morgan Chase and became chief executive officer of Yum! Brands on January 1, 2000, and chairman of the board on January 1, 2001. He is also a member of the Yum! executive/finance committee.
In March 2002, Tricon announced the acquisition of Lexington, Kentucky,-based Yorkshire Global Restaurants, owner of the Long John Silver's and A&W All-American Food chains and its intention to change the company's name to Yum! Brands, Inc. On May 16, 2002, the name change became effective after a vote during the company's annual shareholders meeting, and on June 17, 2002, Yum! executed a two-for-one stock split. Shortly afterwards, due to Yum!'s lifetime contract with Pepsi, Long John Silver's and A&W Restaurants (both of which previously served Coca-Cola) switched to Pepsi products once their franchise contracts expired, with A&W retaining A&W Root Beer from a separate deal with Dr Pepper Snapple Group.
Full article ▸