Angeles Flores
Rene Guillarme
Yvette Minjares
Jarvis Mullahan
Armando Robles
Denise Simon
KFC Facts
• KFC is based in Louisville, Kentucky, and is the world’s most
popular chicken restaurant chain.
• Founded by Colonel Harland Sanders in 1952.
• More than 11,000 outlets
• 85 countries and territories around the world.
• 8 million customers each day.
• Yum! Brands is run by David Novak,
Chairman & CEO
• KFC Division is run by Cheryl Bachelder,
President and Chief Concept Officer
From $105 to 7.2 Billion in 50 years
• 1952, Col. Sanders started franchising his recipe door to door financed by his $105.00 SS Check
• 1964, Col Sanders had more than 600 franchised outlets in the US and Canada.
• 1964, Sold his interest in his company for $2 million to a group of investors.
• 1966, KFC went public
• 1969, Listed on the NYSE
• 1971, KFC was acquired by Heublein Inc. for $285 million.
• 1982, Heublein & KFC Inc. was acquired by RJ Reynolds
• 1986, RJ Reynolds & KFC, was acquired by PepsiCo, Inc. $840 million.
• 1997, PepsiCo, Inc. spined-off of its qsr’s into independent Tricon Global Restaurants.
• 2002, Tricon changed it's corporation name to Yum! Brands, Inc. .
• NOW:
– Yum Brands, Inc. is the world's largest restaurant company in terms of system units with
nearly 32,500 in more than 100 countries and territories.
– Yum! Brands, Inc., is a Fortune 300 company
– Yum! Brands, Inc. global system sales totaled more than $22 billion in the year 2001.
– Current Market Cap value on the NYSE is 7.2 Billion
Yum! Financial Data & Trends
In Past 5 Years:
Debt Ratio has dropped 25%
Net Income after Taxes has increased 31%
Profit Margin has increased 41%
Yum! Brands, Inc. International Presence & Competition
*In Thousands
KFC Domestic & International
Internal Analysis Functional Areas
Finance/Accounting
Since 2001, Yum Brands Inc. has outperformed the market
Marketing
Positioning among competitors is favorable
unconventional methods of distribution
multibranding
Management
Objectives and goals are measurable and achievable
Team empowerment
Productions/Operations
Constant improvement on quality of chicken
Producer and operators are strategically located
Internal Factors SW
• Strengths • Weaknesses
– Multibranding Strategy – Conflicting Corporate
Cultures
– Name recognition and
Reputation – No defined target market
– Targeting Non-Traditional
Outlets
External Factors OT
• Opportunities • Threats
– International Appeal to – PETA
American products
– Consumer health food
– Economies of Scale trend
and Scope
– Saturated fast food
– The downturn of the industry
US economy
Space Matrix
• Industry Strength
CA IS
• Environmental
Stability
• Financial Strength ES
BCG Matrix
Asia Europe
?
USA
Americas
Additional Matrices
• IE Matrix Strong
THE IFE TOTAL WIEGHTD SCORES
Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
3.0 2.0 1.0
4.0
THE EFE Asia 20% US 67%
TOTAL
WIEGHTED 3.0
SCORES
Americas 7%
Europe 6%
2.0
1.0
Market Development
KFC will introduce their present and new products and
services into new geographic/demographic areas.
Product Development
Bring back rotisserie chicken
Concentric Diversification
Add more to KFC product & service variety to the
patients
Implementations
• Market Research
• Determine area’s demand to determine boundaries
• Expand menu
• Healthier choices
• Meals will be sold at cost
• Determine effects on budget
Long-term company objective