Yum! Brands
Yum! Brands, Inc., based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with more than 36,000 restaurants in over 110 countries and territories and more than 1 million associates. Yum! is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008. Four of our restaurant brands – KFC, Pizza Hut, Taco Bell and Long John Silver's – are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories.
The Yum! system includes three operating segments: U.S., International (Yum! Restaurants International) and China Division (includes mainland China, Thailand and KFC Taiwan). Outside the United States in 2008, the Yum! system opened more than four new restaurants each day of the year, making us the largest retail developer in the world.
At Yum! we're building a vibrant global business by focusing on four key business strategies:
- Build leading brands across China in every significant category
- Drive aggressive international expansion and build strong brands everywhere
- Dramatically improve U.S. brand positions, consistency and returns
- Drive industry-leading, long-term shareholder and franchisee value
Results for 2008 once again affirmed our consistent record of success with 14 percent Earnings Per Share (EPS) growth, which marks the seventh straight year we delivered at least 13% growth and exceeded our 10% EPS growth target. For the full year 2008, we generated 3% worldwide same-store-sales growth and opened 1,495 new restaurants outside the U.S. We also returned $2 billion to our shareholders through our dividend and share repurchase programs. Importantly, we continue to be an industry leader in Return on Invested Capital (ROIC) and our 2008 performance was an all-time high of 20%.
We're proud of the unique culture we've built, one that's filled with energy, opportunity, and fun. We believe in our people, trust in their positive intentions, encourage ideas from everyone, and have actively developed a workforce that is diverse in style and background. Yum! is a place where anyone can, and does, make a difference.
Our History and Culture
In October 1997, Yum! Brands was spun off from PepsiCo as Tricon Global Restaurants, Inc. At that moment we established a singular goal from which we've never wavered: To be the best in the world at building great brands and running great restaurants.
Over the past 12 years, our success has been driven by our focus on building leading brands in China in every significant category; driving aggressive, international expansion and building strong brands everywhere; dramatically improving U.S. brand positions, consistency and returns; driving industry-leading, long-term shareholder and franchisee value; and building a unique, fun culture led by people who love the restaurant business.
From the very beginning, we had a passion to create a company that would truly be great and lasting. We turned our passion into a roadmap, one we call the Yum! Dynasty Growth Model, because dynasties endure and lead through the generations.
We believe that our customers' experience will never exceed that of our team members. For that reason, our Dynasty Model starts with our people. We know that people don't just play a role in our success – they are the reason for our success. Our corporate values – what we call our How We Win Together Principles – are built around a "People Capability First" philosophy and lay the groundwork for the way we team together every day.
China
Mainland China is Yum! Brands number one market for new company restaurant development worldwide. In 2008, operating profits for the China Division were $469 million and the company opened more than 500 new restaurants last year in mainland China.
Our strategy is to be the leader in every significant food service category in mainland China. KFC continues to be the number one quick-service restaurant brand and the largest and fastest growing restaurant chain in mainland China today, with nearly 2,600 restaurants in more than 550 cities. Pizza Hut is the number one casual dining brand in mainland China with approximately 430 Pizza Hut Casual Dining restaurants in more than 100 cities.
Each of our brands has great momentum in China as we continue our goal of at least 20,000 units over the long term in mainland China.
International
Yum! Restaurants International (YRI) is a powerful global growth engine for Yum! Brands, with more than 12,800 restaurants outside the U.S. and China Division (mainland China, Thailand, KFC Taiwan) in over 110 countries.
One of our four key business strategies is to drive profitable international growth. YRI's demonstrated track record of growth and expansion of the KFC and Pizza Hut brands around the world has been a large part of our success. YRI is a diverse, high-return business, with more than $528 million in operating profits in 2008 and a record 924 new restaurant openings across six continents. 2008 was YRI's ninth year of opening more than 700 new restaurants outside of the U.S. and China.