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Yum! Brands SWOT & PESTLE Analysis

ID : 52358953| Sep 2020


Business Sector :Restaurants and Food

Operating Geography :North America

About Yum! Brands :

Yum! Brands Inc. or simply Yum! is an American and one of the world's largest Fast Food Restaurant companies, founded by Andrall E. Pearson. It has its headquarters in Kentucky, US. As of 2017 it has 43,617 restaurants out of which 40,758 are franchised and 2859 are owned by the Company. Formerly it was called Tricon Global Restaurants. Yum! Brands subsidiaries include KFC, Pizza Hut, Taco Bell and WingStreet. It trades on NYSE as YUM. Tricon Global Restaurants was a subsidiary of PepsiCo until 1997, after the spinoff Tricon operated in three segments namely, Kentucky Fried Chicken/KFC- specialized in chicken, Pizza Hut-specialized in pizza and Taco Bell- specialized in Mexican food. In May 2002 it was named Yum! Brands, Inc and in the same year Yum company added Long John Silver's and A&W All American Food Restaurants to its holdings until 2011, after which it decided to divest itself from these brands and focus on its core brands, KFC, Pizza hut and Taco Bell. The current CEO of Yum! Brands is Greg Creed.

Yum! Brands Mission “is to build the world’s most loved, trusted and fastest growing restaurant brands and to evolve as iconic, distinctive and relevant global brands”. Yum Company strives to achieve its goals by applying 4 key growth strategies namely, building strong brands, growing the global business, having good restaurants brands and operating with multiple brands as its subsidiaries. Yum brands vision statement reads “"Yum! Brands is committed to continuing the success realized during our first ten years. Our success has only just begun as we look forward to the future, one which promises a long runway for growth, especially on an international level."The USP or Unique Selling Proposition of Yum! Brands is their secret recipes whether it is the chicken from KFC or Pizza from Pizza hut or even the Mexican style food at Taco Bell. Their recipes could not be replicated by other restaurants from the fast food industry.

Yum! Brands Revenue :

US $5.88 billion – FY ending March 31st 2017 (y-o-y growth (negative) –8%)
US $6.35 billion – FY ending March 31st 2016

Ownership / Major shareholders :

Yum! Brands operates the brands Taco Bell, KFC, Pizza Hut, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China. Yum! Brands has 954 institutional holders out of which the following are the top 5 institutional shareholders and the percentage of shares held (as of 31st December 2017):
  • BLACKROCK INC.- 6.12%

Competitive Analysis of Yum! Brands


The SWOT / TOWS analysis of Yum! Brands gives insights about the key factors like the strength, weakness, opportunity and threat of the company. The internal analysis of Yum Brands clearly states that the major strength of YUM Company is its subsidiaries, the 3 big brands under yum namely, KFC, Pizza Hut and Taco bell which has built a strong global presence for the parent company. The kind of food, Yum Brandsoffers under its subsidiary brands is unbeatable in taste and pricing has helped in building a strong consumer base. The yum china case study analysis, shows that due to intense demand and popularity of yum brands food in Chinese market, Yum! decided to develop a separate entity which operates as Yum China Holdings Inc, as a licensee of Yum! Brands in Mainland China from Nov 2016.

A strong management team, unique and exceptional food style, unbeatable recipes, strong financial positioning, multi branding along with global presence are some of the niche strengths of Yum! Brands. These also lend Yum a competitive advantage over its competitors. Some of Yum! brands key success factors are quick service, huge array of diversified food products and brand loyalty. One of the weakness of the company, especially under KFC brand is quality issue and inconsistent taste in different outlets, majorly because the supply chain is not meeting the increasing demands of all outlets.

More franchises in emerging markets, with some new dishes to hit the taste buds of consumers, palpably with proper research and development presents a great opportunity for yum brands. Intense competition from McDonalds to KFC and Dominos to pizza hut, is a major threat to Yum!'s cash cows.

1. Focus on emerging markets
2. Robust supply chain operations
3. Localization & Decentralized Mgmt.
4. Brand Equity & Umbrella Brand
1. Quality Issues
2. Dearth in Innovation
3. Efforts at Rebranding
1. Menu and Concept Innovations
2. Expansion and increasing penetration in new and existing markets
1. Foreign Currency Exchange Risk
2. Chinese Market Risk
3. Increasing health consciousness and Competitive Threats
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Detailed SWOT Analysis of Yum! Brands



1. Focus on emerging markets: Yum! Brands, backed by its KFC and Pizza Hut brands, focus on emerging markets such as China, India is a major competitive edge for the company. US fast-food market is almost saturated with low growth rate of ~2.5% and hence, capitalizing on the growth potential of these untapped markets has been a boon for the company. Yum! Brands even exploited the first-mover advantage in China. 60% of KFC’s volumes and profits and 33% of Pizza Hut’s volumes and profits accrue from the emerging markets , which is testimony to the substantial growth the company has achieved in these markets.

2. Robust Supply Chain operations: Yum! Brands has establisheda strong and strategic supply chain which is rare, sustainable and inimitable core competency. Yum! Brands partners with Restaurant Supply Chain Solutions to provide supply chain services and also deploys proprietary purchasing processes to ensure that minimum quality standards are met at the lowest prices. The company also emphasises that they have strict controls on suppliers via the Supplier Code of Conduct and diverse suppliers to reduce dependencies and leverage multiple perspectives.

3. Localisation and strong decentralised management: The aggressive expansion strategy of the company has been possible due to its internal focus on ‘localisation’ and building a ‘strong decentralized management’. The local management has a better knowledge of the market conditions and thus gives Yum!the freedom to effectively tailor its menu according to the customers’ preferences. It also gives this huge company agility, flexibility and time-responsiveness. It gives the firm a competitive advantage hard to replicate for Yum!has managed to decentralize yet ensure that it provides the highest quality products.

4. Brand Equity and Umbrella Brand: Yum! Brands is a huge company with three of the most popular fast-food chains (Pizza Hut, KFC, Taco) under its umbrella. It has a tremendously high market cap of USD 26 billion. Such massive dominance and presence coupled with the popularity the brands enjoy, it becomes incredibly difficult for any smaller player to compete with the company. This competitive edge provides scalability and expansionary advantage to the company.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

Major Competitors :

1. McDonalds
2. Burger King
3. Subway
4. Dunkin Donuts
5. Starbucks
6. Domino’s Pizza
7. Wendy’s
8. Chipotle
9. Papa John’s Pizza
10. Tim Horton’s

Major Brands :

1. KFC
2. Pizza Hut
3. Taco Bell
4. Wingstreet(Wholly owned subsidiary)
5. Banh shop (Minority Investor)

Key Business Segments / Diversification :

Yum! Brands
Restaurants Food delivery

Recent Acquisition / Mergers / Alliance / Joint Ventures / Divestitures :

Open Table Preview
Business Segment
Objective/Synergy Achieved
GrubhubFood Ordering & Delivery2018AllianceYum! Brands purchased $200 million of common stock and acquired a 3% stake to drive incremental sales to KFC and Taco Bell restaurants in the U.S. through online ordering for pickup and delivery to make its iconic brands easier for consumers to access and drive profitable incremental sales growth for franchisees.
Daojia (Yum China)Food Delivery2017AcquisitionThe transaction aimed at accelerating digital and delivery growth by enhancing know-how and expertise in this growing segment.
Yum China (will become a franchisee of Yum! Brands in Mainland China)Restaurant2015SeparationTo separate into two independent, publicly-traded companies, each with compelling and distinct strategies and investment characteristics. The objective was to create two powerful, best-in-class companies, each with a separate strategic focus.
Source: Company website and other reliable sources. The detailed table is available in the Complete Report.
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Check Out Analysis of Other Relevant Companies

The SWOT and PESTLE analysis report of Yum! Brands offers the following:
  • Complete and comprehensive internal analysis of the company detailing Yum's strengths and weaknesses.
  • Intelligence into the external analysis of the Company highlighting major opportunities and threats for Yum! Brands.
  • A brief about Yum! Brands' history, Yum! subsidiaries, revenue jumps, ownership stakes, key business segments etc., major brands and competitors.
  • Gain understanding of the the core competitive advantages Yum! enjoys over its competitors.
  • Overview about KFC, Pizza hut and Taco bell- the star brands of Yum!
  • A discussion on Yum! Brands' case study in detail and a peek into its marketing and business strategy.
  • Pestle analysis of Yum Brands touching upon specific trends and factors that impact the food industry and restaurant business at large.
  • Knowledge on specific partnerships, mergers and acquisitions, Yum Brands has undertaken.
  • Competitive analysis about its competitors and threats they pose on Yum! brands
  • Strategic intelligence on growth opportunities Yum brands has in emerging markets.
  • Global and local market position of Yum! Brands and its subsidiary brands
References used in Yum! Brands Analysis Report

1. https://www.Yum!.com/annualreport/pdf/2016-Yum!-AR.pdf


3. https://www.Yum!.com/annualreport/pdf/2016-Yum!-AR.pdf

4. https://www.Yum!.com/company/

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Yum! Brands SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & (2021). Yum! Brands SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 03 Mar, 2021].

In-text: (SWOT &, 2021)

Copyrights and Disclaimer

Yum! Brands SWOT and PESTLE analysis has been conducted by Aastha Agarwal and reviewed by senior analysts from Barakaat Consulting.

Copyright of Yum! Brands SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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