Yum! Brands Inc. (Louisville, Ky.) plans to sell its Long John Silver’s and A&W All-American Food brands, which account for 1630 franchised units.
The sale will allow the company to focus on improving its domestic system under the three remaining brands, KFC, Pizza Hut and Taco Bell, as well as international expansion.
“We do not believe Long John Silver’s and A&W All-American Food restaurants fit into our long-term growth strategy,” says ceo David Novak. “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.”
Yum says it does not expect the eventual sale to have a significant impact on ongoing earnings or cash flow.
Looking ahead, Yum plans to open 900 restaurants in Yum Restaurants International and 475 units in China this year. Domestic strategic goals in the near term include refranchising the KFC system and continuing a test of breakfast at Taco Bell. The company operates or franchises 37,000 restaurants worldwide.