Yum! Brands, Inc. (NYSE:YUM) Looks Forward To Investing $185 Million In KFC

The food industry in U.S. is on a roll-out once again as major players are looking forward to making an investment in growing companies. Amongst many others, Yum! Brands, Inc. (NYSE:YUM) has decided to make a hefty investment of $185 million in another fast food giant KFC. As per the reports, Louisville, Ky. based Yum will get a hold on all the domestic marketing activities of KFC.

Do analyst foresee a momentum shift in YUM?

What Made Yum To Execute This Deal:

The announcement was made by the firm on Wednesday. The last year was not that good for KFC, as it couldn’t match up with the sales and revenue standards that it had set over these years. Even after losing its plot in 2014, KFC continued its fight to overcome from the weak sales figures. The current deal is an excellent result for KFC US after all the efforts that it had put in over the last many months. If the same-store sales of KFC in the previous quarter are taken into consideration, one can notice that it rose by 7% in 1Q2015.

The senior management of the company was delighted to announce this news. Greg Creed, Chief Executive Officer, Yum, was happy to see his company performing this well after spending a rough year. According to him, the thing that played a significant part in piling up the same-store sales in the previous quarter was the Fill-Up Box offered by KFC. Even though, it costs no more than $5 but offers a wide range of items, a drink and a few side dishes. It proved to be a hit concept in the market, especially for those people who are tight on budget.

Creed further stated that the company would continue to build its customer base and offer delicious, low-cost products to people in the coming months to ensure that they continue supporting the company.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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