By Clark 
Yum! Brands has announced intentions for global development, indicating that a new Taco Bell, KFC, or Pizza Hut may soon be established in a nearby town.
Yum is regarded as the largest quick-service restaurant corporation globally. Although you may not be well-acquainted with the Yum moniker, you are undoubtedly familiar with its brands: KFC, Pizza Hut, Taco Bell, and Habit Burger.
This week, Yum declared intentions to establish a minimum of 100,000 new worldwide restaurants and raised its long-term unit-count growth forecast to 5%.
Yum, a formidable entity in the casual dining sector, manages over 50,000 restaurants in 150 countries. The worldwide brand perceives significant potential for substantial expansion.
“Yum Brands CFO Chris Turner recently stated in an interview that they believe they can incorporate an additional 100,000 restaurants.” “We believe all brands ought to experience growth.”
Currently, Yum is a significant contender in the fast food industry, however it does not hold the top position. The Louisville, Kentucky-based company continues to trail behind industry leaders like as McDonald’s and Subway regarding recognition and revenue. In 2021, McDonald’s generated approximately $23 billion in revenue. Conversely, Yum reported $6.58 billion.
Furthermore, although Yum possesses a greater total number of locations than either McDonald’s or Subway (about 39,000 global units each), Yum’s establishments are distributed among its four primary brands.
If successful, these ambitious development strategies might enable Yum to dominate the fast-food industry.
Returning to the figures, a 5% growth rate may appear modest; but, for a firm managing 54,000 restaurants globally, this equates to 2,700 sites. Yum saw remarkable expansion in 2021, inaugurating 3,100 new sites, and management believe that all of Yum’s brands can surpass these figures in the future.
CEO David Gibbs stated, “We firmly believe that each of our brands has the potential to double their store count over time.”
A considerable share of that expansion is expected to derive from Taco Bell, which presently operates over 7,000 locations in the U.S.—a stark contrast to McDonald’s over 13,000 domestic outlets.
Mark King, CEO of Taco Bell, stated, “We believe that as we increase average unit volumes and maintain robust margins, there is no reason we cannot achieve the same figures here in the U.S.”
The global market presents a significant opportunity for Taco Bell. Only a few nations presently host over 100 Taco Bell restaurants, including Spain, India, and Portugal. Until date, Yum has focused on the international expansion of its other brands, such as KFC and Pizza Hut; however, in 2020, Julie Felss Masino was appointed president of Taco Bell International. Since that time, she has concentrated on expanding Taco Bell’s Mexican food into additional regions and markets. By year-end, Yum anticipates exceeding 1,000 foreign Taco Bell outlets.
“We currently operate in 31 markets,” she remarked. “Examining the 150 markets in which Yum operates globally reveals significant untapped potential.” There are several thousand eateries still accessible for construction there.
KFC and Pizza Hut, conversely, have experienced significant expansion and success internationally. Pizza Hut operates nearly 12,000 international locations, whereas KFC has 23,000 establishments worldwide. Conversely, the situation in the United States has been markedly different in recent years. KFC’s domestic restaurant count had been decreasing for almost two decades prior to 2021, while Pizza Hut is only now poised to inaugurate new sites for the first time in nearly a decade (2014).
Pizza Hut attributes the increase in domestic outlets to the emergence of new, well-capitalized franchisees.
Aaron Powell, CEO of Pizza Hut, informed investors that sixty-five percent of the company’s U.S. locations are owned by franchisees who have partnered with them since 2015. Ninety percent of our total constructions involve the new franchisees. We have integrated into the system several well-capitalized, highly talented, and deeply committed franchisees.