Vision Statement: "Yum! Brands is committed to continuing the success realized during our first ten years. Our success has only just begun as we look forward to the future, one which promises a long runway for growth, especially on an international level"

Divisions

• Yum! Brands China
• Yum! Brands India
• KFC
• Taco Bell
• Pizza Hut

Proposed Strategy: Implement ordering Kiosks to decrease wait times and increase efficiency at Taco Bell

Internal Assessment: Key Ratios

• Liquidity - (Quick/Current)
• Profitability - (Gross, Operating, ROE)

Matrices: IFE

Strengths:

• Diverse customers based on versatile selection of foods
• Strong business strategy of franchising, generating over $2 billion from fees
• Taco Bell is the restaurant leader for social media

Weaknesses

• Lack of appeal to all generations
• Taco Bell's drive-thru wait time is consistently high
• Outdated building structures and technology

External Assessment:

Major Competitors

• McDonald's
• Domino's
• Chipotle

Matrices: EFE, CPM

Opportunities:

• Society becoming faster paced with less time to make food at home
• 96% of millennials say they have eaten at a QSR at least once in the last 3 months - largest group to eat out
• Chicken will become choice meat of the future

Threats

• Minimum wage is being raised to $15 in some states in the near future
• High employee turnover rate > 100%
• Healthy eating index is expected to increase as consumers become increasingly aware of issues such as obesity, weight, and fatty-food intake

Strategy Formuation

Matrices

• IE
• SPACE
• Perceptual Map
• GRAND
• SWOT Bivariate

QSPM

• Kiosks - Total Attractiveness Score: 3.95
• Acquire Smoothie King: 2.36

Strategy Implementation

2016

• First 6 months research best locations
• Implement kiosks into 150 new locations
• Learning curve expected
• Sales expected to stay the same

2017

• Implement kiosks into 400 new locations
• Efficiency expected to increase 32%
• Sales expected to increase 4% due to increased speed and efficiency
• 550 stores/43,000 total stores x 32% efficiency = 4% increase

2018

• Implement kiosks into 450 new locations
• Efficiency expected to increase 35%
• Sales expected to increase 8%
• 1000 stores/43,000 total stores x 35% efficiency = 8% increase

Financial Analysis - Income Statement

Operating Profit

• 2015 - $1,921,000
• 2016 - Without 1,931 With 1,926
• 2017 - Without 1,940 With 2,015
• 2018 - Without 2,058 With 2,196

Net Income

• 2015 - $1,298,000
• 2016 - Without 1,277 With 1,224
• 2017 - Without 1,239 With 1,293
• 2018 - Without 1,322 With 1,422

Financial Analysis: Balance Sheet

Cash

• 2015 - $737,000
• 2016 - Without 1,244 With 1,235
• 2017 - Without 1,047 With 1,050
• 2018 - Without 984 With 1,006

Retained Earnings

• 2015: $1,150,000
• 2016: Without -3,092 With -3,096
• 2017: Without -2,835 With -2,784
• 2018: Without -2602 With -2,452

Financial Analysis: ROA & ROE

ROA

• 2015: 16.07%
• 2016: Without 14.36% With 14.33%
• 2017: Without 14.90% With 15.32%
• 2018: Without 15.55% With 16.18%

ROE

• 2015: 133.95%
• 2016: Without -37.62% With -37.49
• 2017: Without -42.89% With -45.54%
• 2018: Without -48.63% With -55.34%

Financial Analysis: NPV & IRR

• Initial rate: 16.07%
• Initial outflow: -56.456
• Year 1: 0
• year 2: 54
• year 3: 99
• NPV = $40.48
• IRR = 47%