The Long John Silver's and A&W All-American Foods brands account for a total of 1,630 restaurants, all of which [image-nocss] are owned and operated by franchisees.
"Over the past decade, Yum! has delivered annual EPS growth of 13%, exceeding our 10% annual growth target. This has been driven by aggressively building restaurants in China and Yum! Restaurants International at a pace of nearly four new restaurants every day of the year. We do not believe Long John Silver's and A&W-All American Food restaurants fit into our long-term growth strategy," said David C. Novak, Yum! Brands, chairman and chief executive officer.
He added, "Accordingly, we have decided to put these two great brands up for sale and we will complete the sale only once the right buyer or buyers have been identified and we can ensure a seamless transition."
The company does not expect the eventual sale to have a material impact to its ongoing earnings or cash flow.
In 1998, when Yum! Brands was spun off from PepsiCo, 22% of its profits were sourced internationally. Today, about 65% of the company's profits are from the China and Yum! Restaurants International divisions, and the company expects that percentage to grow to 75% by 2015.
In the United States, Taco Bell accounts for approximately 60% of the company's profits, followed by Pizza Hut and KFC.
Yum! Brands, based in Louisville, Ky., is the world's largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries and territories. It had revenues of nearly $11 billion in 2009. Four of the company's restaurant brands--KFC, Pizza Hut, Taco Bell and Long John Silver's-- are the global leaders of the chicken, pizza, Mexican-style food categories and quick-service seafood categories. A&W Restaurants is the longest running quick-service franchise chain in America.
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