If you mention the name Yum! Brands to anyone, they may look back at you in confusion. Tell them about Pizza Hut, KFC, and Taco Bell and almost every single one of them would recognize them. What they do not know is that these fast-food chains are actually Yum Brands subsidiaries. Yum owns all these franchises, operating over 43,000 restaurant units across more than 135 countries (of which approximately 95% are franchised with the balance being company-owned). So, how did the company start? How does it operate? How did it acquire its famous subsidiaries? We will investigate this in detail in this article.
Previously known as Tricon Global Restaurants Inc., Yum! Brands is an American Fast Food corporation officially listed on the Fortune 1000. Based in Louisville, Kentucky, it is one of the world’s largest fast-food restaurant companies in terms of system units. In 135 nations and territories worldwide, they operate 43,617 restaurants, including 2,859 that are company-owned and 40,758 that are franchised.
The company’s history goes back as far as 1977 when PepsiCo acquired Pizza Hut. Next year, Pepsi bought Taco Bell as well. Their restaurant division was on a roll. Adding to this, in 1986, R.J Reynolds sold KFC to them as well in order to pay off their debts incurred by other purchases. PepsiCo now owned three of the most famous franchises in the United States of America. A number of acquisitions followed which included various other fast-food restaurants. However, these would be sold when PepsiCo dissolved its restaurant business. Hence, in 1997, PepsiCo sold “Pepsico Food Systems” restaurant-supply unit to Ameriserve Food Distribution Inc.
Yum! Brands was created on May 30, 1997, as Tricon Global Restaurants, Inc. from PepsiCo’s fast food business as the head organization of Pizza Hut, KFC, and Taco Bell restaurant franchises. These franchises would thereon be Yum! Brands Subsidiaries. However, the name change to “Yum! Brands” would come a few years later.
After the acquisition of Yorkshire Global restaurants in 2002 (owner of the Long John Silver’s and A&W Restaurants), Tricon changed their name to Yum! Brands, Inc. to match its NYSE ticker symbol. The company would continue to expand internationally over the upcoming years, eventually operating in 135 countries.
Yum! Brands has had various subsidiaries over the years. Currently, KFC, Pizza Hut, and Taco Bell are among the most famous ones.
Did you know that these famous franchises were Yum Brands subsidiaries? Lets us know your thoughts in the comments below.