Bloomberg reports that Yum Brands Inc., which owns the KFC and Taco Bell restaurant chains, plans to sell its Long John Silver’s and A&W All-American Food Restaurants to focus on expansion in China and other regions.
“We do not believe Long John Silver’s and A&W-All American Food restaurants fit into our long-term growth strategy,’’ chief executive David C. Novak said yesterday in a statement.
The two brands account for more than 1,600 outlets, all of which are owned and operated by franchisees, Yum said. Yum, based in Louisville, Ky., has a network of more than 37,000 restaurants worldwide. The company also plans to sharpen its focus on the Taco Bell, KFC, and Pizza Hut chains.
“They just had a little trouble restoring the glory days of A&W,’’ said Jack Russo, an analyst at Edward Jones & Co. in St. Louis.
Yum bought Long John Silver’s and A&W for $320 million in 2002, giving the company five brands to use in various two-in-one and three-in-one combinations.
Read more at: Bloomberg