Back Yard Burgers inks 40-Unit deal with Yum! Brands franchisee

May 23, 2002

MEMPHIS, Tenn. -- Memphis-based Back Yard Burgers Inc., announced it will open as many as 40 stores with a Yum! Brands franchisee over the next 10 years. Terms weren't disclosed.

The all-Angus burger chain currently is developing 10 multi-branded test restaurants at Yum corporate stores.

According to Dow-Jones Newswires, Yum franchisee John McGrath, who operates about 60 Taco Bell, Pizza Hut and KFC units, will begin opening stand-alone Back Yard units in Florida and South Carolina as early as this year.

Separately, Michael G. Webb, CFO of 104-store Back Yard Burgers, said the first Back Yard/Yum combination unit -- a hamburger/Taco Bell store -- is operating in Shepherdsville, Ky., near Louisville, where Yum is headquartered. Two Back Yard/Pizza Hut units are planned near Nashville, he added.

Yum chairman David Novak stated late last year that his company's growth, both domestically and abroad, will center on multi-brand units.

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