33. Who is behind KFC, Taco Bell and Pizza Hut
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33. Who is behind KFC, Taco Bell and Pizza Hut
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When you hear the name Yum! Brands ($YUM), you immediately think of its iconic fast-food chains: KFC, Taco Bell, and Pizza Hut. It’s one of the largest restaurant companies in the world, with tens of thousands of locations serving millions of customers daily. The common perception is that they are in the business of operating a massive global restaurant empire.
But the real story behind Yum! Brands is its transformation into an "asset-light" franchising powerhouse. The company now franchises over 98% of its restaurants, meaning its primary business isn't making food; it's licensing its world-famous brands to operators and collecting high-margin, recurring royalty fees. This capital-efficient model has allowed it to scale globally with incredible speed. However, managing a diverse portfolio of legacy brands in a hyper-competitive market presents its own challenges. Can the strength of Taco Bell and KFC offset the struggles in the pizza category?
We're ordering from the value menu to see if Yum's franchise-focused business model is a recipe for long-term growth or if its different brands are pulling the company in too many directions.
Created with love by Emil Lazzaroni
2 new episodes per week, until I can find good companies to hold forever.
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