Money Morning asked:


By Mike Caggeso

Associate Editor

Money Morning

Yum! Brands Inc. (YUM) expects another year of double-digit profit growth.

For nearly everyone else, 2009 won’t be just “another year.” Nearly every economist expects the first half of the New Year to bring more of the same, a deepening global financial crisis that’ll throw an even bigger, wetter blanket on economic growth than it did this year.

Indeed, even more than in 2008, next year will be a real-life case study of the survival of the fittest. And Yum’s certainly fit for the fight.

“Our industry is better-positioned in times like this,” Yum Chief Executive Officer David C. Novak told The Wall Street Journal. “We’re better-positioned than most other categories and industries.”

Already, we’re seeing companies slash work forces, trim (or abolish) dividends, and lock the safe that stores their spending money, sell off holdings or even shut down completely.

Yum’s not immune from the downturn. It, too, is cutting $60 million in operating costs from its U.S. business. It’s also putting a hold on buying back shares next year to preserve cash.

But unlike most, Yum hasn’t red-lighted its 2009 expansion plans – it’s still planning to build as many as 1,400 restaurants in international markets. About 500 of those new stores will be in China. That’s part of the reason the overall company is projecting at least 10% profit growth in 2009.

More broadly, Yum is expanding in the world’s fastest-growing economies and is making its menu part and parcel of every foreign country in which it operates. Two factors have imbued the company with a corporate killer instinct that’s enabling it to survive and thrive in the face of the current harsh economic environment: The innate strength of its own brands and a proven ability to adapt to any market it decides to pursue.

For marketing muscle, the Louisville, Ky.-based Yum has an army of brands – Pizza Hut, Kentucky Fried Chicken, Long John Silvers and A&W – plus its own line of Yum Restaurants that it operates outside the United States.

And its overseas franchises – especially Pizza Hut and KFC – are especially adept at making themselves the people’s favorite local flavor, instead of just their favorite American flavor.

Here’s a look at some of the items on Pizza Hut’s China menu: tuna fish pizza, roasted squid, zesty shrimp soup, a variety of rice-and-meat dishes (kimchi pork, curry beef and Hungarian beef rice), green tea, and chocolate mousse cake.

The bottom line: Yum’s stronghold and growth potential in China is shaping up as one of the most promising investment stories of 2009.

China Stronghold

As far as Yum Chief Financial Officer Richard T. Curucci is concerned, the company’s target for 10% profit growth should be easy to hit.

“We can get these numbers without heroic sales performance” at existing restaurants in China, Carucci said on a Webcast from the company’s analyst meeting, Reuters reported.

While Carucci says that Yum is “still not sure how China’s going to respond to a slowing economy,” he is certain of the company’s master plan which makes the Red Dragon the centerpiece of its growth strategy.

As of now, the United States accounts for 41% of Yum’s operating profits. China accounts for 28% and the rest of the company’s operations around the world account for the remaining 31%.

By 2013, China will account for 40% of Yum’s operating profit, while the United States and the rest of the world will each account for a 30% share, according to company projections.

As this plays out, Yum should outdistance some of its rivals, especially McDonald’s Corp. (MCD). That’s because Yum has done a better job penetrating the China market.

From 2002 to 2007, Yum opened 1,678 new stores in China, for a total of 2,558. In that same span, McDonald’s added 330 stores, giving the Golden Arches’ owner a total of 876 stores in China.

Yum has even stolen McDonald’s thunder in the mascot department. Its KFC mascot, a chicken character (naturally) named “Chicky,” roams stores and interacts with children. And the company’s Chicky program includes in-store birthday parties, kids’ fun camp and school tours of its stores. No wonder that Novak, the Yum CEO, boasted to Business Week two years ago that Chicky had already become “the Ronald McDonald of China.”

“We’re on the ground floor of a booming market, just like when Colonel Sanders started KFC and Ray Kroc started McDonald’s,” Novak told Business Week, noting that he one day wants to have as many restaurants in China as he does here in the United States.

Stateside Strategy

Novak said last week that the United States market was the lone problem the company has had in 2008.

Not only does Yum face a wider number and variety of competitors, but also fighting the headwinds of recession.

In addition to cutting $60 million from operational costs and suspending the company’s share buyback, Yum will offset the planned opening of 200 new U.S. restaurants by closing about the same number.

Other strategies will appear on the menu.

At Pizza Hut, the company is adding lasagna to its new Tuscani pasta line.

At KFC, it’s rolling out a grilled chicken option, a menu item Novak called a “transformational product” at an investor conference last week, The Associated Press reported.

The chicken chain will also create and promote a value menu, featuring items costing from $0.99 to $1.99.

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Investment News



Debbie

spiffyone asked:


Most fast food companies in the US get their meat from cattle ranches in South America which use land that was once rainforest. More and more rainforest is being destroyed to make room for these ranches.

Corey

Margie Remmers asked:


Two heart-warming stories. One important message.

The Case of the Disgruntled Preschooler

When I arrived at the gym this morning, it was wet and cold.

As is often the case, there were parents unloading preschoolers and shuttling them into the adjoining school.

Today, however, there was one little girl who got my attention.

As she got out of the car and experienced the harsh winter weather, she started crying. Her mom, simultaneously juggling a baby in a stroller and trying to comfort her young daughter, said, “Well, honey, just keep walking and we’ll be in the warm building soon.”

The little girl–while walking with her mom in the direction of the warm building–cried even louder and said, “NO! We’ll never get in the building!”

As I brushed by this young family, I couldn’t help but chuckle. Here was the little girl walking toward her goal–her target within view–and yet, she couldn’t see it. All she could see was the wind and the cold and the wet snow around her making her miserable.

The Case of the Misdirected Pizza

It had been a long, cold day, and I didn’t feel like getting up from under the warm blanket. Cooking dinner was unthinkable. The solution? One quick call to Domino’s, and a warm meal would be on its way.

I lumbered to the kitchen and made the call.

Ah. Mission accomplished. Back to the warm blanket.

Twenty-five to forty minutes later, the food arrived, and I herded the children into the dining room. We gave thanks, cracked open the box, and…horrors! The pizza was not what we ordered!

Perhaps we would not be so upset except for this simple fact: we are vegetarians, and what was sitting on our table was a dead pig. They had put ham on our pizza! Blech.

I called Domino’s. Surely they would make everything all right.

Unfortunately, the woman on the phone seemed confused. I had to explain the situation several times. She was irked that my voice rose every time I had to explain again.

They would send the correct pizza.

Twenty-five to forty minutes later, the second set of pizzas had still not arrived, and I was due at my neighbor’s house any minute. I had no choice but to call Domino’s and tell them to deliver it to a different address.

I called, and again, I was faced with having to explain the situation multiple times. Again the lady was irked that my voice continued to rise.

I arrived at my neighbor’s house furious and frazzled. I knew my neighbor would not be home, but I was meeting a mutual friend there for an evening of crafts and conversation. I ran in and quickly explained what a rotten day I’d had and apologized for being late. My friend was very gracious, of course, and waited while I went back to the car to get my things–including the meat-tainted pizza. I couldn’t keep it in my house, so I planned to give it away.

When I walked in with the boxes, my friend looked at them and nearly cried. “You brought food?” she said. “Yes,” I explained, “this pizza is why I am so upset. I thought you might want some. Did you eat?”

She looked at me and paused. Tears welled up in her eyes and she said, “I can’t believe you brought pizza.”

I was a little stunned at her reaction. After all, I hadn’t quite recovered from my irritation at the situation. The correct pizzas still had not arrived, so I was distracted by my determination to remain mad at Domino’s. Why was she reacting this way?

Suddenly I had a realization, and I said, “Are you why this happened to me?”

She looked at me almost ashamed and embarrassed–she had prayed for pizza.

It turns out that she had ordered pizza for her husband and house guests, but she didn’t get to eat any. It had arrived just as she was leaving, and she didn’t want to be late to meet me. She had planned on going hungry.

Now it was my turn to be ashamed and embarrassed. How dare I be upset when I know that everything happens for a reason. Oh, how I was kicking myself at my base ingratitude for the situation. I didn’t know the pizza would bless Sandi, but I could have imagined that it would bless someone.

It seems in retrospect that much if not all of our frustration in life comes from a lack of perspective.

The little girl only saw what was right in front of her–not where she was headed. I got a wrong pizza and only saw how bad it was for me–not how much good would come out of it.

It reminds me of the fly who is so focused on pushing through the glass that he doesn’t notice there is an open window right next to him.

Oh how much of our frustration can be eliminated just by looking at the big picture–seeing from a distance! Seeing that the effort a butterfly must exert when pushing out of his chrysalis makes his wings sturdy and strong. Seeing that the trials we go through make us stronger, too.

Seeing that despite the wind and cold, we really are headed toward a warm building.



Holly

All Hail Brak! asked:


The Noid was this goofy character with long ears and a red suit. He was the mascot of Dominos during the 1980s. He would try to ruin pizzas and failed everytime a Dominos pizza would come across.
What if he made a comeback?

Lester

Lexdemon514 asked:


im just wondering why. i would think it would be easier for the pizza to be square or make the pizza box round. but why do pizza stores put the round pizza in a square box?

Betty

suresh asked:


One of the biggest mistakes made by business people is operating with prejudice based on ignorance. In the crucial areas of sales and marketing, this mistake is made most often by neglecting the absolute most effective vehicle for obtaining new customers and reigniting the interest of existing ones. An important mentor of mine, Dan Kennedy calls it “writing your own check”. This vehicle is known commonly as a sales letter.

Basically it is a salesman on paper that keeps working and working without the need for profit sharing or vacation days. There is nothing particularly special or unique about good advertising copy, except that it works. For more details you can visit at www.sale-trigger-generator.com The fact is that most businesses never make use of the power of good advertising copy in any form.

Failure to make use of the power of good advertising copy and it is noticeable in lost profits. Just so it is clear, there is no set “format” for a sales letter to work to create customers. No reason to worry. Take the attitude that even bad copy is close to your goal because there are very specific things you can do to make it good, fast.

To get started: Go to the nearest library and pick up a pile of magazines from the popular genres. The areas you are most interested in are sports, fitness, health, fashion, and entertainment. Pick a specific category within the genre and then a more general one. In the area of health and fitness, pick up Men’s Health and then more specifically one dealing only with getting bulky through weightlifting. Read through them and focus on the ads.

You’ll know the sales letters because they are usually full or half page, but not always. They frequently offer a free report if you contact them. Very often the focus is on the product or service and there is almost no mention of a company name. Trutfhfully, the big corporation advertisers you see during the final episode of Seinfeld or whatever, don’t have a clue about sales letters or how to use them.

When you find really good sales copy you’ll know it. You’ll know it because it is interesting in that it makes you interested in the thing they are selling. Mark it with page tag and go get two or three of the previous issues of that magazine. If the ad is in there again, it is safe to say that it likely has been a success.

By way of comparison, the ads you see during a popular prime time show are focused on mass marketing of products to a generally large audience. They use things like talking horses and the like. Keep in mind that they usually have no clue of the effectiveness of their millions spent. That is not wise advertising. You can also visit at www.sales-letters-creator.com. They have the millions to spend. You must bring the general public who has never heard of you what the benefit of your product is and make it clear right away.

Rule #2 is to convey a unique benefit to your customer. The question to answer is: “Why should I be doing business with you and not others offering the same product or service?” What can you do for them? The ultimate question.

It has been written many times over about the power that a simple USP (unique selling proposition) can have for a business. Tom Monaghan, founder of Domino’s pizza took a fledgling pizza joint in a college town (he lived in the back room at the beginning) by carving out special turf in the brutal market of pizza with: “Fresh Hot Pizza delivered in 30 Minutes or Less, Guaranteed”.

That simple USP frankly brought the big boys to their knees and had those playing catch up.

But you might have noticed that having a powerful USP is strategy # 2. Where is strategy

It is the headline. The headline is the first thing that captures the reader’s attention. It is vital. How to put together a good headline is a great topic for future discussions.

www.10steps-to-killer-web-copy.com

www.private-labels-empire.com



Bradley

Nelson Tan asked:


In English idiom, “2 left feet” refers to an inept dancer and generally, a clumsy person. Putting this meaning aside, I wish I had 2 left feet so that I don’t have to worry whether to go left or right, so I’ll just stick to left and let Life happens as it always does, and if I walk left long enough, maybe enough people will start to question, “Does this guy ever turn right?”

Regardless of what ’success’ means to you, for everyone reading this, it is a plus, not a minus. Success is a profitable endeavour. No intelligent people on earth would insist on walking from circumstance to circumstance getting pulled down all the time and still declare themselves a ’success’ if that’s fine with them. Well, it’s fine with them, but I call it ’stubbornness’.

Success is not hocus-pocus; it’s all about FOCUS. Just how many people had faltered in time past, thought twice and diverted when success was just a block away or around the corner. Consider the total revenue (in US$ billions) amassed by Coca-Cola and Pepsi Cola. Pepsi bought over Taco Bell, KFC, Domino Pizza and owns a range of soft drinks like 7-Up, Miranda and others, to name just a few.

Come to think of it, so many ‘advisors’ in the world say you shouldn’t put your eggs in one basket; that’s why you diversify your attention left and right. Here is one very great example of why putting all your eggs in one basket can earn you 10 times more. Coca-cola may not be good at mergers and acquisitions, but it has transcended that kind of business. It has become such an evangelistic institution that it conquers India faster than you can say ‘Christianity’.

It’s the same with McDonald’s. McDonald’s stick to ‘McDonald’s’ and The Mac–small and big–becomes such an indispensable identity, people cannot “think outside the Mac”. Today, many food franchises have emulated McDonald’s franchise/food delivery system, but it is still the largest food chain in the world and will remain that way for a good while.

You can be a successful entrepreneur and feel relatively secure in life. You may no longer need to worry about maintaining your home or the welfare of your spouse and kids, but the level of success enjoyed by Coca-cola and McDonald’s is something on a scale that cannot be contained by family life, not saying that family life may be a hindrance too. To rise to that level, surely more work needs to be done on building up current flagship products and foundation.

So do you start to walk right? Not really. Success is really achieving one thing and using that as a stepping stone to achieve something else. It’s no secret, but oh, how many CEOs do not have the wisdom to appreciate it. For some reasons, they thought having only one type of product is not enough to provide a sense of security, so ‘expansion’ means ‘diversification’.

Creative Technology might have a better bet sticking to its “digital home entertainment” concept. It could have built on the SoundBlaster to move closer to that vision quickly rather than to dabble with MP3 players and optical disk drives. The MP3 player market already belongs to the iPod, no matter how technically bad it is compared to other players while Creative had to write off its disk drives in the late 90s due to excess inventory, remember? It wins some, it loses some, but has the company learnt its lesson yet?

Netscape Communications came very close to that level of success, very close. It collapsed on itself by expending all its energy on suing Microsoft because it must have thought “the Internet and the browser market is mine, MINE! Muahaha”. Instead of improving its own backyard, it got distracted by another company’s presence and competition. What does that tell you about not having enough faith in oneself? Now Microsoft and Google are encroaching in each other’s territories so we shall see how history repeats itself.

Friends, be focused! The center-point of your attention and the jewel in your eye is the most profitable of them all. Your family members and a few close friends may know you for many good and bad secrets, but most people know you for only one thing. I know nuts about the ingredients that go into making Coca-cola, but the impression is it’s better than Pepsi. Creative Technology is known for creating beautiful sounds on the computer. Bill Gates got rich making software. Michael Jordan is the king of basketball, so is Muhammed Ali for boxing, and either have tried baseball. The late Peter Drucker is the founding father of management consultancy and much less well known for his infatuation with Japanese art. Who cares about Japanese art until someone comes along and proactively promotes it like a loudhailer all his/her life?

If you want to catch the attention of as many people as possible, you simply cannot diversify. Do not be tempted left and right but ponder the narrow path right upon your feet in front of you. Here are 3 ways you can build up your ultimate success through focus:

1) Build on your strength. Each and every person has a set of different capabilities, in which some are greater than others. Do you know what you are already good at? Do you have a revenue model for your capabilities? Start building up those good ones to a commercial level with more practice and research for better revenue generating methods in exchange for your products and services which arise out of your capabilities. The beginning of an unsuccessful business is when you become a jack of all trades and master of none.

2) Build on your uniqueness. This refers to natural talent. Beethoven composed his first symphony at the age of 4. You call that ‘capability’ or ‘talent’? The question is: what are the few things you can do brilliantly without pushing too hard? While others find it difficult, you find easy. When you find something that gets you excited and passionate about, business becomes play instead of work.

3) Build on your life purpose. For a great many people, money is a stumbling block. We are constantly trying to ensure that our deserved payoff matches the amount of effort we expend, no less, but yeah, more would be a bonus, thank you very much. If everybody thinks and acts like this, we will all be a step closer to hell really. There’s no greatness in living a life as suckers. Truth is, living a purpose-driven life is most profitable at its heart when you feel you are really alive doing the things you love to do and knowing that your contribution to the people around you will make you great, without ever thinking so much about payoff.

You only have one life to live, so what do you want to be remembered for before you die? Think about it. Life is full of all its joy and pain, and consequences whether you do certain things or not, but until you gain a sense of direction as you ponder every step of your feet, you wouldn’t have known how wonderful ‘progress’ means to you. Achievement is a great feeling; don’t indulge in it though, it’s only interim. There’s always another level of success ahead of you…yet.

All roads lead to Rome; that doesn’t mean it’s necessary for you to go to Perth. But if you have no choice but to go one big round through Perth, you will have to do it if you seriously want people to remember you for your one and only Rome.



Jay

why not? asked:


I live in the Southwest, the pizza here can taste so doughy,but East Coast pizza is so nice and chessy.

William

Robert asked:


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Jennifer