• MSNBC/AP, Thursday, December 13, 2007 11:45 AM

Yum Brands will introduce new products, including beverages and breakfast meals, expand its value menus and offer healthier options at all three of its main U.S. brands--KFC, Taco Bell and Pizza Hut. CEO David Novak says the U.S. division's transformation is being modeled after moves made in the past few years at McDonald's.

These techniques--particularly menu variety and healthier offerings--have already proved successful in Yum's mainland China division, according to Novak. At KFC restaurants in China, for example, the company offers fish products and is testing a line of beef items. In the U.S., the chain mainly sells fried chicken.

To brainstorm ideas for how to fix the division, Novak says restaurant managers all visited a McDonald's location to see for themselves what made that chain so successful. The managers found that McDonald's was taking advantage of all its day parts, and had expanded its menu to included different types of protein, like chicken, fish and meat, salads and beverages.

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