Business Insider caught up with Yum! Brands’ David Gibbs to discuss recent acquisitions throughout the industry and the parent company’s strategic approach.
As evident in the recent blockbuster acquisition of Sonic, consolidation is becoming increasingly prevalent in the restaurant business. To get a better idea of what scaling through acquisition means for the future of the industry, Business Insider interviewed David Gibbs, president and CFO of Yum! Brands about the strategy his company employs.
Yum! Brands is the parent company of franchise giants KFC, Taco Bell and Pizza Hut and has more than 45,000 locations across the globe. The company has owned these chains since its formation in 1997, and surprisingly, has yet to add another brand to its portfolio.
"We don't need to do an acquisition to build scale,” Gibbs told Business Insider. “We already have scale.”
The article notes Yum! Brands has been approached by numerous brands seeking an acquisition, but the franchise brand parent company has specific (and secret) parameters that must be met for an acquisition to make sense, according to Gibbs. He noted that while Yum! Brands isn’t seeking to add to its portfolio at this time, the company is always on the lookout.
"We have a very high bar because we know the brands that we have today are incredible growth brands that we have just scratched the surface around the world in realizing their full potential," Gibbs stressed to Business Insider.
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