Still maintains ownership in KFC, Taco Bell and Pizza Hut for push into China.
September 23, 2011
by Canadian Packaging Staff
Yum! Brands Inc., the world’s largest restaurant company with 38,000b restaurants in 110 countries and territories has just got a little smaller. Yum! Brands has agreed to sell its Long John Silver’s, Inc. and A&W Restaurants, Inc. in individual transaction expected to close in 4Q.
No terms were released, but the Louisville, Kentucky-based Yum! notes that A Great American Brand LLC and the National A&W Franchisees Association, have agreed to purchase A&W, the longest-running quick-service franchise chain in the U.S.
As well, LJS Partners LLC—a consortium of prominent franchisee leaders and other investors—will acquire the Long John Silver’s franchise.
In a released statement, David C. Novak, Yum! Brands, Inc. chairman and chief executive office says: “We are pleased to announce that we have identified strategic buyers who are passionate about these two great restaurant brands and committed to their growth potential.
“As we continue to sharpen our long-term growth focus on international expansion and improving our US brand positions in KFC, Pizza Hut and Taco Bell, Long John Silver’s and A&W no longer fit our long-term growth strategy.”
Yum! Brands had purchased A&W and Long John Silver’s for US $320-million in 2002. Put up for sale in January of 2011, Yum! Brands wants to concentrate on boosting its market presence in China via its three remaining brands: Taco Bell, Pizza Hut and KFC, as it did not feel that A&W and Long John Silver’s had enough global appeal to increase the company’s international status.
Yum! Brands generated over US $11-billion in revenues in 2010.
For more information on Yum! Brands, visit www.yum.com.