YUM BRANDS INC (YUM)

Yum! Brands, Inc. is a franchisor of quick service restaurants, incorporated in North Carolina in 1997. It has more than 63,000 restaurants in 155 countries and territories, operating primarily under four concepts: KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. YUM does not directly own or operate restaurants itself, though its subsidiaries own some. At December 31, 2025, 97% of units were run by independent franchisees or licensees. In 2025 the company began a review of strategic options for the Pizza Hut brand, which it intends to complete in 2026.

The company reports four operating segments, one for each concept. In 2025, the KFC Division had 33,897 units and system sales of $36.4 billion. KFC offers fried and non-fried chicken products such as sandwiches, chicken strips and chicken-on-the-bone. The Taco Bell Division had 9,030 units and $18.4 billion in system sales, and specializes in Mexican-style food such as tacos, burritos, quesadillas, salads and nachos. The Pizza Hut Division had 19,974 units and $12.8 billion in system sales, and sells ready-to-eat pizza through delivery, carryout and casual dining. The Habit Burger & Grill Division is a fast-casual concept with 384 units and $706 million in system sales, built around made-to-order chargrilled burgers and sandwiches. Total system sales were $68.3 billion. In 2025 YUM introduced Byte by Yum!, a platform of proprietary software and AI-driven products covering online and mobile ordering, point of sale, kitchen and delivery optimization, menu, inventory and labor management. System digital sales approached $40 billion, or about 60% of system sales.

YUM serves consumers through traditional restaurants offering dine-in, carryout, drive-thru and delivery, and through non-traditional express units in locations such as malls, airports, gas stations and stadiums. About 72% of units are outside the U.S. The company has roughly 1,500 franchisees, ranging from single-restaurant owners to large public companies. About 40% of its more than 61,000 franchised units operate under master franchise programs, including over 17,000 in mainland China, and the rest under store-level agreements. Franchisees typically pay monthly continuing fees of 4% to 6% of sales plus upfront fees, and must spend on advertising. Yum China, spun off in 2016, is the largest master franchisee and pays a 3% fee on mainland China system sales.

Franchisees supply the capital for land, buildings, equipment and inventory. The main purchased items are chicken, cheese, beef, pork, paper and packaging. In the U.S., purchasing is handled through Restaurant Supply Chain Solutions, LLC, and McLane Foodservice is the main distributor. Outside the U.S., the company and its franchisees use global, regional and local suppliers and distributors. The company competes in an intensely competitive retail food industry against supermarkets, convenience stores, coffee shops and restaurant chains, as well as delivery aggregators, and it does not consider its operations materially seasonal. It owns significant trademarks including KFC, Taco Bell, Pizza Hut and The Habit. At year-end 2025 it employed about 49,000 people, and its franchise restaurants employ an estimated 1 million more. Its headquarters are at 1441 Gardiner Lane, Louisville, Kentucky.