Yum! (NYSE:YUM) Brands on the Road to Siagon- Yum! Brands Inc (NYSE:YUM)

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By Thomas Copeland on September 13, 2014 Consumer Staples

The well known Yum! Brands Inc. (NYSE:YUM) has been seen to be working on a brand new concept that is expected to bring it up to the level of its subsidiaries; Taco Bell, Pizza Hut Inc and KFC Corp. – all of whom are seen trying to win back U.S. sales from fellow competitors.

The restaurant giant started the first of its two locations on Friday on a trial basis. The restaurant is to be called Banh Shop – it will be a place inspired by Vietnamese culture. It aims to sell banh mi sandwhiches as reported by the Nation’s Restaurant. While this will be run now, the second store aims to open in the next month. The stores are located somewhere within the Dallas district and will set up work soon.

The executive of Yum (NYSE:YUM) in charge of the Banh Shop project, Christopher Poirer reported to Nation’s Restaurant News that with the increasing popularity of Southeast Asian foods in the U.S., Yum! (NYSE:YUM) saw the opportunity to launch a different fast-casual concept. They would be imitating street food of Saigon, which is how they came up with banh mi Vietnamese sandwiches.

It is said that the menu will comprise of Southeast Asian soups, salads, banh mi sandwiches and wok-fired bowls that include cilantro, protein, pickled carrots, daikon, aioli, Thai basil and cucumber cut in ribbons are also on the menu.

This concept is so new in the lineup that Yum! (NYSE:YUM) as well as its subsidiaries are currently just testing it. The famous Taco Bell is also testing one of its upscale taco outlets named U.S. Taco Co. along with Urban Taproom. KFC’s also has its KFC Eleven concept. The subsidiaries are not far away from achieving their goals with continuous market research and additions to the businesses simultaneously.

Yums! (NYSE:YUM) made a wise decision of looking out for local talented chefs like Yasmin and Braden in creating different types of banh mi along with other dishes and beverages.

However, Super Chix’s has a menu with such variety thus making it appear as a version of Five Guys that focuses only on poultry. Ad Age made a comparison of it to Chick-fil-A -KFC’s rival. Starting with a chicken burger, customers get the opportunity to choose toppings and the option of chicken tenders or fries as sides. This marketing is more premium than that of KFC as Super Chix shows off its signature dish as the best true chicken sandwich there is; however, it just isn’t the best U.S. chicken sandwich. KFC needs to pull up its socks in order to compete in the market.

Increasing comparable sales for Yum! Brands (NYSE:YUM), considering all three concepts is challenging. In Q1, comparable sales in the U.S. dropped 3% for KFC, 5% for Pizza Hut and 1% for Taco Bell. Therefore, the brands may become a means of growth with new items on their menus. The brand is definitely stopping the U.S. sales slide though. Yum! brand (NYSE:YUM) is without a doubt reaching for the stars.