The claim: China owns Taco Bell, KFC and Pizza Hut
A viral Facebook post claims that China now owns a handful ofwell-known American fast food restaurants, including Taco Bell, Pizza Hut and KFC.
The Feb. 25 Facebook post, which has been shared more than 300 times, reads "Am I the only person that didn't know that CHINA owns KFC, TACO BELL and PIZZA HUT??"
In the comments section, some users disagreed with the original post's claims, while others mentioned further concerns about China's financial involvement in the U.S.
USA TODAY has reached out to the poster for comment.
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Who owns Taco Bell, KFC and Pizza Hut?
Taco Bell, KFC and Pizza Hut are owned by Yum! Brands Inc., which is based in Louisville, Kentucky. The company owns 50,000 restaurants, primarily the aforementioned brands, in more than 150 countries and territories.
In 2016, the company spun off its China business — which appears to be what the Facebook post is referencing —making itan independent and publicly traded company.
The CEO of Yum! Brands is David Gibbs. Yum China is led by Joey Wat.
Yum China is a separate company from Yum! Brands, and according to the company'swebsite, has "the exclusive rights to operate and sub-license the KFC, Pizza Hut and Taco Bell brands in China."
Our ruling: False
The claim in the post has been rated FALSE. Yum! Brands, based in Louisville, Kentucky, owns and operates Taco Bell, Pizza Hut and KFC restaurants in the United States. Yum China operates fast-food subsidiariesin China. Following a 2016 spin-off, they are two separate companies.
Our fact check sources:
- Yum! Brands, Company
- USA TODAY, Oct. 20, 2015,"Yum Brands to spin off struggling China business"
- Forbes, Nov. 1, 2016,"Yum! Brands Spins Off China Unit In New York Amid Losses In Market Share"
- Yum! Brands, "Senior Officers and Leadership Team"
- Yum China,"Senior Officers"
- Yum China, Oct. 5, 2017, "Yum China Announces CEO Succession Plan"Yum China,"About Yum China"
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Our fact check work is supported in part by a grant from Facebook.
I have a solid grasp of the fast-food industry, particularly regarding ownership structures and global business operations. Yum! Brands Inc. is the parent company of Taco Bell, KFC, and Pizza Hut. Headquartered in Louisville, Kentucky, this conglomerate manages approximately 50,000 restaurants worldwide, primarily featuring these iconic brands across more than 150 countries.
In 2016, Yum! Brands spun off its China business, which led to the emergence of an independent and publicly traded entity known as Yum China. This spin-off is crucial to understand because it essentially created two distinct companies: Yum! Brands and Yum China. While Yum! Brands oversees operations outside of China, Yum China exclusively operates and sublicenses the KFC, Pizza Hut, and Taco Bell brands within China.
David Gibbs stands as the CEO of Yum! Brands, while Joey Wat leads Yum China. This distinction in leadership further reinforces the separation between the two entities.
The Facebook post claiming that China owns these fast-food chains is false. The confusion arises due to the spin-off of Yum China in 2016, which led some individuals to misinterpret the ownership structure. However, Yum! Brands remains the owner and operator of Taco Bell, Pizza Hut, and KFC restaurants in the United States and internationally, excluding China, where Yum China handles operations.
To support this clarification, sources like Yum! Brands' official company information, articles from Forbes regarding the spin-off, and details from both Yum! Brands and Yum China's websites provide substantial evidence and verifiable information about their separate corporate structures and operations.
Understanding this nuanced ownership delineation between Yum! Brands and Yum China is vital to debunk misconceptions about the control and ownership of these renowned fast-food brands, especially in the context of global business operations and corporate restructuring.
