Almost all of 2009 is not just “another year.” Almost all economists expect the first half of the new year bring more of the same, a tightening of global financial crisis, even more, throw wet blanket on the fact that economic growth this year.
Yes, even more than in 2008, next year will be a case study of real life survival of the fittest. Yum and is quite capable of wrestling.
“Our industry is better positioned in such moments,” Yum Chief Executive David C. Novak said The Wall Street Journal . “We are better than most other categories and industries set.”
Already we see companies slash cut work force (or remove) the dividends, and lock the vault, save their pocket money, sale of assets or cease altogether.
Yum is not immune to recession. It is also the intersection of dollars in operating costs of its U.S. business. It had received also an influence on share buyback program next year to cash
But unlike most, Yum has not red-lit the 2009 expansion plans -. It still wants to build as many of 1,400 restaurants in international markets. Approximately 500 of these new businesses will be in China. This is partly the reason for the global society, projecting 10% earnings growth in 2009.
In general, Yum is the fastest growing economies in the world expanded and made them an integral part of the menu all the countries in which it operates. Two factors, the companies with killer instinct to survive and thrive, companies in the face of the current difficult economic environment allows penetrated. The innate strength of their own brands and a proven ability to adapt to each market, he decided to continue.
For marketing muscle, Louisville, Kentucky based Yum has an army of brands – Pizza Hut, Kentucky Fried Chicken, Long John Silvers and A & W – on its own line of Yum restaurants outside the U.S.
and operates its franchise abroad -. especially Pizza Hut and KFC – are particularly suited to his favorite flavor of the local people, rather than just their favorite American taste
is a preview of some of your menu items from Pizza Hut in China. Pizza with tuna, squid, grilled spicy shrimp soup, a variety of rice dishes and meat (pork kimchi, beef curry and rice, beef, Hungarian), green tea, and chocolate mousse.
line China Stronghold
. Yum far affected as Chief Financial Officer Richard T. Curucci, should beat the goal of the company’s profit growth of 10% easily.
in existing restaurants in China: “We can get these numbers without the heroic achievement of sales,” Carucci said on a webcast analyst conference company, reports Reuters .
Although Carucci said Yum “not yet sure how to react to a China slowdown,” it is certainly a master plan, the company that has the Red Dragon makes the centerpiece of its growth strategy .
From now on, the United States 41% of operating profit of Yum. China accounts for 28% and the rest of the company’s activities around the world represent the remaining 31%.
In 2013, China accounts for 40% of Yum’s operating profit, while the U.S. and the world which each have a share of 30%, according to forecasts by the company.
that should cheek, Yum overcome some of its competitors, including McDonald’s (MCD). Since Yum has done a better job of penetrating the Chinese market.
2002 2007 1678 Yum opened new branches in China, for a total of 2558th In the same period, McDonald’s has added 330 stores, so that the owner of the Golden Arches in a total of 876 branches of China.
Yum has even the thunder of McDonald’s, in the department’s mascot. The mascot of KFC chicken character (of course) named “Chicky”, wanders into the stores and interact with stolen children. And the program includes the company Chicky birthday parties in the business, fun children’s camp and school visits to its stores. No wonder Novak, CEO of Yum, the business boasted weekend two years ago that already Chicky “Ronald McDonald of China.”
“We are booming on the ground floor of a market, as if Colonel Sanders started KFC and Ray Kroc started McDonald’s,” said Novak Business Week and noticed that one day he finally so many restaurants in China, how it works here in the United States.
Stateside strategy
Novak said last week that the U.S. market was the lone issue of the company in 2008.
Yum not only face a greater number and variety of competitors, but also the fight against the headwinds of recession.
In addition to reducing operating costs and suspension million to repurchase shares of the company are united Yum coverage of the expected opening of 200 new restaurants in the U.S. due to the closure of the same number .
Pizza Hut expands the company’s offerings to new Tuscani pasta lasagna. is
KFC to send a grilled chicken option, a menu item called Novak “processing product” is reported at an investor conference this week Last The Associated Press .
Chicken chain also create and support to offer a value menu at a price tag of 0.99 to 0.99.