Yum! Brands, Inc. (formerly Tricon Global Restaurants, Inc.) is an American fast food corporation listed on the Fortune 500. It is the world’s largest restaurant company in terms of system units with more than 43,000 restaurants in 135 countries. Yum derives its revenue from its four core brands: KFC, Pizza Hut, Taco Bell and WingStreet. Until December 2015, Yum! was also the parent company of Long John Silver's and A&W Restaurants. Yum! Brands is a publicly traded company with shares listed on the New York Stock Exchange under the stock symbol YUM.
The History of Yum! Brands
Yum! Brands was formed in 1997 when PepsiCo spun off its restaurant division. The new company was called Tricon Global Restaurants, Inc., and it included the restaurant chains Pizza Hut, KFC, and Taco Bell. In 2002, the company changed its name to Yum! Brands, Inc. to better reflect its core products. The company has grown steadily since its formation, and now has more than 43,000 restaurants in 135 countries.
Yum! Brands Stock Performance
Since its IPO in 1997, Yum! Brands stock has performed well. The stock has grown steadily, with a few dips in 2000 and 2008. Since 2010, the stock has seen steady growth and is currently trading at around $93 per share. The company has also paid a dividend since 2004, and has increased the dividend amount each year since then. In 2020, the dividend yield was 1.8%.
Recent Developments for Yum! Brands
Yum! Brands has continued to expand its operations in recent years. In 2014, it acquired the remaining stake in the Chinese fast food chain Little Sheep Group, which it had previously owned a stake in. In 2015, Yum! Brands spun off its Long John Silver’s and A&W Restaurants chains into a separate company called The Inspire Brands. The company has also recently opened a number of new restaurants, including KFC locations in India, and a Pizza Hut in Vietnam.
Yum! Brands Stock Outlook
Yum! Brands stock has performed well over the past decade, and the company has continued to expand its operations around the world. The company’s focus on international growth and its strong dividend yield make it an attractive investment. Analysts are expecting the stock to continue to perform well in the future, and many are predicting that the company’s share price could reach as high as $100 in the near future.
Risks for Yum! Brands
Yum! Brands faces a number of risks that could affect its stock price. The company is heavily reliant on its international operations, and a sharp decline in the global economy could hurt its performance. The company also faces competition from other fast food chains, particularly in the U.S. market. Finally, the company’s performance could be hurt by negative publicity, such as the E. coli outbreak at Taco Bell in 2006.
Conclusion
Yum! Brands has a long and successful history, and its stock has performed well over the past decade. The company has a strong dividend yield and is focused on international growth, which bodes well for the future. However, the company faces a number of risks that could affect its stock price, including a downturn in the global economy and negative publicity. Investors should take these risks into account before investing in Yum! Brands.