Yum! seeks to sell Long John Silver's, A&W
January 18, 2011
by Keith Nunes
LOUISVILLE, KY. — In an effort to sharpen its long-term focus, Yum! Brands, Inc. announced plans to sell its Long John Silver’s and A&W All-American Restaurants.
“We do not believe Long John Silver’s and A&W-All American Food restaurants fit into our long-term growth strategy,” said David C. Novak, chairman and chief executive officer. “Accordingly, we have decided to put these two great brands up for sale and we will complete the sale only once the right buyer or buyers have been identified and we can ensure a seamless transition.”
The company said it does not expect the eventual sale to have a material impact to its ongoing earnings or cash flow.
In 1998, when Yum! Brands was spun-off from PepsiCo, Inc., Purchase, N.Y., 22% of its profits were sourced internationally, according to the company. Today, about 65% of the company’s profits are from the China and Yum! Restaurants International divisions, and the company expects that percentage to grow to 75% by 2015. In the United States, the company said Taco Bell accounts for approximately 60% of its profits, followed by Pizza Hut and KFC.