Start a Restaurant

Restaurants are, and will continue to be, an extremely profitable business. As a result, shareholders who have interest in brands such as McDonalds and Starbucks need not to worry about negative implications for the food giants compared to more risky industries. One company in particular, Yum! Brands (YUM), is another brand investors should become familiar with. Consumers may recognize the more specific stores the company owns such as Taco Bell and Pizza Hut, but investors should realize the sales and earnings growth associated with this organization. In addition, while there are many companies in the restaurant industry, Yum not only rings familiar with consumers like Starbucks, but Yum engenders excellent financial news at a level above its competitors.

However, before trying to access these financial statements, it is important to understand more specifics about Yum’s business model. According to Reuters, Yum “is a quick service restaurant (QSR) with over 34,000 units in more than 100 countries and territories.” These quick service restaurants include consumer favorites such as Taco Bell, Pizza Hut, Long John Silver’s, and KFC. Whether the operating segment sells pizza or chicken, “Yum develops, operates, franchises and licenses a worldwide system of restaurants, which prepare, package and sell a menu of food items.” (more…)