LITTLE SHEEP

Little Sheep was founded by Zhang Gang. There are two versions of the company's founding in Baotou. According to one story, Zhang Gang, who was busy running a telecommunications business, developed a habit of eating hot pot with friends rather than cooking; this gave him the idea to open a hot pot restaurant. Another version of the story is that Zhang Gang observed the commercial success of a chain of three hot pot restaurants in Hohhot; convinced of the business potential of the hot pot restaurant format, he purchased hot-pot-based recipes and began to develop Little Sheep.

On August 8, 1999, the first Little Sheep outlet of the Inner Mongolia Little Sheep Catering Chain Co., Ltd. was opened in Baotou City.

The Little Sheep serves lamb, beef, and other specials. Mongolian wine is served at Little Sheep.

On May 13, 2011, Yum! Brands announced it intended to acquire Little Sheep Group Co., Ltd. at a premium of approximately 30% in cash. After the acquisition, Little Sheep Group would be delisted from the Hong Kong Stock Exchange. The transaction was approved by relevant regulatory agencies such as China's Ministry of Commerce. Because Yum! Brands and Little Sheep Group are relatively large, according to the law, this transaction was subject to China's anti-monopoly.

After the acquisition in February 2012, Yum! Brands held approximately 93.2% of the shares of Little Sheep, the rest of which were owned by Zhang Gang and other founders. Yujing Su, chairman and chief executive officer of Yum! Brands' China Department, said, "Yum! Brands will use its extensive experience in operating restaurants to further enhance the brand's value and influence of Little Sheep, in order to make Little Sheep a strong leader in the Chinese hot pot market." Zhang Gang was also confident Little Sheep would have a bright future in the international market.