News

Yum! Brands selling Long John Silver's, A&W

January 17, 2011

Louisville, Ky.-based Yum! Brands has announced that it is planning to sell its Long John Silver's and A&W All-American Food brands, and is actively looking for a buyer.

Yum! also owns Taco Bell, KFC and Pizza Hut and said the two chains do not fit into Yum!'s long-term strategy.

There are 1,630 Long John Silver's and A&W units, some of which are co-branded.

The two brands have long struggled to generate a spark. The Louisville Courier-Journal reported a few years ago that officials were disappointed with both chains, but expressed optimism as they were significantly smaller than Yum!'s other concepts and therefore didn't have much of an effect on Yum!'s bottom line.

While Yum! searches for buyers, the company will continue to focus on overseas expansion for its three flagship brands, where the bulk of its sales are generated.

The company's major focus continues to be China, where it opened 500 new restaurants in 2010 and now operates more than 3,500 units in more than 650 cities in mainland.

Yum! outpaces its nearest competitor, McDonald's, by more than 1,000 restaurants in China and is outpacing its development by a 3:1 ratio. Each of Yum!'s brands has great momentum in that country, as the company continues to barrel toward its goal of having a 20,000-unit footprint over the long term.