Yum! Brands

Yum! Brands, Inc. (NYSE: YUM) or Yum! is a Fortune 500 corporation, that operates or licenses Taco Bell, KFC, Pizza Hut, and Long John Silver's restaurants worldwide, and A&W Restaurants everywhere excluding Canada. Based in Louisville, Kentucky, it is the world's largest fast food restaurant company in terms of system units — over 35,000 restaurants around the world in more than 110 countries and territories.^[2] In 2007, Yum!'s global sales totalled more than US$10 billion.

History

Yum! was created on October 7, 1997, as Tricon Global Restaurants, Inc. an independent company, as a result of a spin-off 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 with Dr Pepper Snapple Group for A&W Restaurants to be the exclusive restaurant provider of A&W Root Beer as well as franchisees such as HMSHost and college-operated locations that have separate contracts with Coca-Cola that override PepsiCo's lifetime contract with Yum! Brands.

Yum! president, David C. Novak became chief executive officer on January 1, 2000 and chairman of the board on January 1, 2001. Novak is a member of the Yum! executive/finance committee and is a director of J.P. Morgan Chase.

In March 2002, Tricon announced the acquisition of Lexington-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. In 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.

In 2004 and 2005, Yum! Brands was the target of boycotts by the American Decency Association for its advertising on what it calls "trashy shows" and by the Organic Farmers & Gardeners Union for alleged "sweatshop conditions" among farm workers ^[3].

In February 1, 2006, Yum! Brands became the first official sponsor of the Kentucky Derby,^[4] which is now called "The Kentucky Derby Presented by Yum! Brands".

The growth of Yum! Brands throughout the United States has slowed from its previous rapid expansion. This is due to the fact that the chain has saturated most of the domestic market. The future growth of Yum! Brands is targeted mainly at foreign areas, such as China, where populations are enjoying increases in income.^[5]