Yum Brands Inc, owner of the Pizza Hut, Taco Bell and KFC fast-food chains, said on Thursday it aims to own fewer than 10% of its U.S. restaurants by the end of 2010, down from about 20% currently.
In a statement, the company also said it expects earnings per share to increase at least 10% in 2008, in line with its long-term targets.
For several years, Yum has been selling off hundreds of its U.S. restaurants to franchisees. Refranchising restaurants reduces company sales, but improves profit margins because the company collects more in franchise fees without having to operate the restaurants. Full article.
Yum To Cut Owned Restaurants Sharply By End 2010
December 13, 2007 by Cris | 1 Comment
In Franchisees, Franchises, News, Restaurants
FranchiseBrief.com on December 14th, 2007 at 2:57 pm
“improves profit margins because the company collects more in franchise fees without having to operate the restaurants”. That’s the point of franchising, isn’t it?