- With a near-enough 100% franchised estate, Yum's ownership of the KFC, Taco Bell and Pizza Hut brands results in significant levels of profitability.
- Pizza Hut has struggled for a long time amid poor restaurant-level margins, though Taco Bell and KFC have more than offset this.
- Being a franchisor ought to protect cash flow amid significant input cost inflation, although contracting restaurant-level margins might dent near-term growth.
- Over the long run, Yum can continue to leverage modest same store sales growth and higher unit growth into double-digit annualized returns for shareholders.
For further details see:
Yum Brands: KFC To Carry On Powering Long-Term Growth