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KFC, Taco Bell, Pizza Hut parent names new CEO

The triple-brand powerhouse, Yum Brands, will see a changing of the guard in 2020 after the company announced its current CEO Greg Creed will retire.

Pictured left to right is outgoing Yum Brands CEO Greg Creed, with incoming CEO David Gibbs. (Photo provided)

August 13, 2019

Yum Brands, parent company of KFC, Taco Bell and Pizza Hut said late Monday it will start the new year with a new CEO when current CEO Greg Creed retires and current President and COO David Gibbs officially assumes the top position.

The company's board unanimously elected Gibbs to fill the top spot and assume a position on the board beginning Nov. 1, according to a press release. 

Creed, 62, will retire after 25 years at the triple-brand powerhouse, while Gibbs, 55, steps into the role from his current duties overseeing all three brands' global divisions. Creed was named CEO in January 2015 and Gibbs credits him with leading the brands through major turning points in their collective success. 

"I've had the privilege of partnering with our franchisees to grow the three iconic brands within the Yum Brands portfolio for over 30 years and am honored to follow in Greg's footsteps," Gibbs said in the release. "It's thanks to Greg's terrific leadership and innovative brand building during some of the most pivotal moments in our history that Yum! Brands has emerged as a vibrant and industry-leading growth company. 

"I'm grateful that Greg and I have had the good fortune to build on the legacy of our co-founder David Novak — a strong foundation of three iconic brands and the positive recognition culture he established after our company's spinoff from PepsiCo in 1997."

During the course of his leadership, Creed successfully executed the 2016 spinoff of Yum China, which was a key move toward the company's transformation to a business model that has been more than 98% franchised since 2017, the release said. He is also credited with improving the company's G&A efficiency and significantly reducing capital expenditures. 

Creed came to the CEO role from his previous position as CEO of the global Taco Bell Division, where he is credited with leading the brand's transformation into a sector leader. 

"No other retailer in the world is like Yum! Brands, with our iconic global brands, category leadership, massive scale and uniquely diversified portfolio," Creed said in the release. "I'm proud of how we're emerging from our multi-year transformation as a more focused, franchised and efficient growth company. The best of Yum! is still to come and I'm delighted we have an exceptional leader like David who will drive the next wave of growth for our company."

Creed, who will remain in the top spot through the end of the year, will also serve as a part-time advisor next year and remain on the board. As Yum! Brands CEO, Gibbs will assume responsibility for company strategy, structure, people development and culture, with a focus on driving global growth, sales and profitability 

"The board and I are confident that David Gibbs is the ideal leader to drive the next chapter of global growth for the company," said Yum Brands Non-Executive Chair and Target Corporation CEO Brian Cornell, in the release. "He has played a central role in all that Yum! Brands has accomplished over the past several years and understands the need to put customers, employees, franchisees and shareholders at the center of everything."

Creed added that Gibbs has a passion for the company's worldwide business and brands and qualifies an "outstanding commercial leader."

"He has been an invaluable strategic partner to me during our transformation and instrumental in shaping our global strategy, accelerating the pace of global new unit development, executing our transformation goals and laying a strong foundation for future growth," Creed said. "Importantly, David lives and breathes our people-first culture and is determined to take it to the next level."

Gibbs is a 30-year veteran of the company and has held leadership roles at all three brands in everything from global strategy and finance to general management, operations and real estate. He was named to the COO spot earlier this year, but previously served as the company's president and CFO. He is credited with creating the company's financial, refranchising and restaurant development strategy to transform Yum Brands into what the company called a "capital-light, pure-play franchisor."

"Because of our journey to become more focused, franchised and efficient, we're now in the best position we've ever been in to accelerate growth and improve franchise unit economics, but we still have more to achieve," Gibbs said in the release. "Everywhere we operate, we need to continue elevating and investing in a world-class customer experience, with unrivaled talent, modern assets, the best operations and innovative technology. This effort is only achievable through a strong partnership with our more than 2,000 franchisees who run 98 percent of our restaurants globally and employ more than 1.5 million restaurant team members who work for our brands around the world."
 

Photo: Provided