Welcome to KFC

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

The International Portfolio of 5 leading U.S. Brands give Yum! a distinctive advantage over the single-brand competitors.

KFC Domestic & International

Internal Analysis Functional Areas

Finance/AccountingSince 2001, Yum Brands Inc. has outperformed the market

Computer Information SystemsNewly established Computer information system

 Marketing

Positioning among competitors is favorableunconventional methods of distribution multibrandingManagementObjectives and goals are measurable and achievableTeam empowerment

 Productions/Operations

Constant improvement on quality of chickenProducer and operators are strategically located

Internal Factors SW

• Strengths– Multibranding Strategy

– Name recognition and Reputation

– Employee Loyalty

– Global Expansion

– Targeting Non-Traditional Outlets

• Weaknesses– Conflicting Corporate

Cultures

– No defined target market

– Time it takes to market new products

External Factors OT

• Opportunities– International Appeal to

American products

– Economies of Scale and Scope

– The downturn of the US economy

• Threats– PETA

– Consumer health food trend

– Saturated fast food industry

Space Matrix

• Competitive Advantage

• Industry Strength

• Environmental Stability

• Financial Strength

Aggressive position

FS

IS

ES

CA

BCG Matrix

Asia Europe

USA

Americas

?

Additional Matrices

4.0THE EFETOTALWIEGHTED 3.0SCORES

2.0

1.0

1.03.0 2.0

THE IFE TOTAL WIEGHTD SCORESWeak

1.0 to 1.99Average

2.0 to 2.99Strong

3.0 to 4.0

Asia 20% US 67%

Americas 7%

Europe 6%

• IE Matrix

• Grand Strategy Matrix– Quadrant I

Alternatives

• KFC Hospice Dinners – Delivering a caring outreach to the terminally ill (SO)

• KFC Cafeterias – Offering dishes competitors do not (SO)

• KFC Grocery Products – The Cornel is always home (SO)

Alternatives Not ChosenOur recommendations to KFC

KFC CafeteriaMarket Development

Concentric Diversification

• Similar to Furrs or Lubys• Fast food with traditional

restaurant environment• Reaching out to a new

market

KFC GroceriesProduct Development

Market Penetration

Concentric Diversification

• Similar to Taco Bell groceries

• Advantage of Name Recognition

• Frozen Meals• Chicken Breading Mix

KFC Hospice dinners Delivering outreach to terminally ill

– Hospice delivers meals to the terminally ill nationwide.

– These meals are delivered directly to the patient in their own home.

– Why?• Political & Social Image• Advances KFC’s name recognition and reputation• “Secret Recipe”• Expands employee loyalty

Strategic Management

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

• KFC is a publicly traded company with responsibilities to all shareholders

• By becoming a more “socially responsible” corporation we hope to attract a new type of investor while retaining our current stockholders.

• Ben & Jerries & Starbucks have benefited financially by promoting their “socially responsible corporation”

• KFC hopes to achieve this by becoming synonymous with hospice.

Thank you for your attention

The End

Yum! Brands, Inc.http://www.yum.comKFChttp://www.kfc.comThailandhttp://www.kfc.co.th/Japanhttp://www.kfc.co.jp/Crueltyhttp://www.kfccruelty.com/The Wall Street Journalhttp://www.wsj.com