SWOT Analysis of YUM! Brands


Yum Brands is the world’s largest restaurant owned by PepsiCo with its headquarters situated in Louisville, Kentucky, United States. The company is a public restaurant founded on 7 Oct, 1997 as Tricon Global Restaurant, Inc. It is organized by President Scott Bergen, Chairman David C Novak and Vice chairman Samuel Sue. Presently the company operations are regulating 36000 restaurants across the world.


• The bond of the company with PepsiCo has been enhanced with the extension of business ties with the other companies associated with PepsiCo.

• World wide services are being paid by the brand.

• According the recent statistical data the company holds the assets of US$8.32 Billion.

• A hybrid combo unit was launched by Yum in 2003, which proved to be a turning point as it then amalgamated with pasta bravo for $5million.

• The Kentucky Derby services provided by the company are remarkable since its launch in 2006.

• The company owns the strong management team that makes the wise utilization of the resources available to the company.

• Portfolio of the yum brands is strong enough to invite the competition with others service providers in this respect.

• No one is compatible with the quality of a product maintained by yum as their dealers provide the material of that specified standard to the Yum Restaurants only.

• The managerial functions operates by the brand are very much strong with the special focus on team work lying on the principles of division of labor.

• Financial arrangements of the company are efficiently maintained.

• The customers of the brand are leveraged for the brand, promoting it positively and maintaining the strong consumer’s base.

• Commodities produced by the brand are unique and second to none in standard which maintained by the quality control department.


• The liquidation position of yum brand is weak as the cash flow with in the company is not strong enough to be quoted.

• The commodities produced by the brand are mostly damaged as are shipped across to the specific destinations.

• Domestic markets if not treated according to the local demands of the customers become the reason of slower growth.

• In January 2011, Company suffered set backs because of ill managed expansion in Canada and America.

• Supply chain of the brand is not up to the mark.

• Somehow miscommunication occurs in delivering the product especially in the case of web marketing.

• Economical position of the brand doesn’t meet the scale.

• Innovative ideas are not very welcomed by the company’s maintaining authorities rendering the slow growth of the brand.

• Shares in the market of the brand are comparatively low.


• The demand for beverages is growing rapidly, so the PepsiCo affiliation can do well in this perspective by introducing more and acceptable innovative products.

• It can be visited by its customers online through its website yum.com for placement of orders and for the feed back as well.

• It has a greater potential for exceeding business in china because of its population growth.

• The changing trends of the customers are very appropriate for the growth of the company.

• It’s the opportunity for the company to increase the money market through debts which also makes its financial position better.

• Yum Brands can increase the online services for success in future.


• Sudden increase in the prices of different goods makes a bad impact.

• Company is facing intense competition across the world.

• Compulsion to follow the government rules and regulations to be secure in the near future.

• Substitution of the product is a major problem.

• It’s the need of the brand to enhance the services and the products.

• Use of cheaper technology falls down the level of product.


• Official Website. Yum.com. Retrieved on  August 5, 2011.
• Cyrek, Christopher (October 20, 2009). “Pizza Hut going after wings market”. Dallas Business Journal (Dallas, Texas: American City Business Journals, Inc.).
• Fast food’s yummy secret: America’s second-biggest fast-food group is as successful as it is little known Special report in The Economist (August 27, 2005) on Yum! Brands.

One Response to “SWOT Analysis of YUM! Brands”

  1. Buy G-Star says:

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