Yum Brands' Subsidiaries, KFC and Pizza Hut, deliver substantial income for corporation's shareholders
In the bustling world of fast food, two giants - KFC and Pizza Hut - are making waves in the UK and Ireland. KFC, a part of the wider Yum! Brands family, has announced a significant £1.49 billion investment plan over the next five years, focusing on expanding its presence and creating thousands of new jobs.
KFC's Ambitious Growth
This ambitious expansion includes the opening of up to 500 new restaurants and renovating over 200 existing ones. This move will create more than 7,000 new jobs across the country, not just in-store but also within the supply chain.
The investment will be divided, with approximately £466 million allocated for estate expansion and over £404 million set aside for strengthening relationships with local suppliers and supporting growth in related industries. Renovated restaurants will feature improved energy efficiency, updated technology, and an enhanced customer experience, reflecting KFC’s commitment to sustainability and innovation.
Expansion Details
In 2025 alone, KFC plans to open around 50 new UK restaurants, with incentives offered to agents who find suitable locations, including retail, leisure parks, high streets, travel hubs, and food courts. The company is particularly targeting key areas like Ireland and North West England, with a strong emphasis on flagship sites and drive-thru locations.
This expansion aligns with KFC’s strategy to boost demand for British poultry, benefiting local producers by increasing contracts and supporting responsible farming practices.
Pizza Hut's Rescue and Performance
Meanwhile, Pizza Hut's UK operations, formerly a dine-in franchise partner of Pizza Hut in the UK and its main partner in Denmark and Sweden, underwent a rescue in January 2022. The company, Heart With Smart (HWS), owed more than £50m before the rescue, which was led by an entity controlled by investment firm Directional Capital. The rescue saved more than 3,000 jobs across the country.
Despite the rescue, HWS's financial performance did not affect the plans or financial performance of Yum! Restaurant Holdings or Yum! Restaurants Europe, as mentioned in previous reports.
Yum! Brands' Financial Performance
Yum! Brands, the US food giant that also controls KFC, posted a pre-tax profit of $1.2bn for 2024, significantly higher than the $317.1m posted for 2023. Yum! Restaurants Europe issued a dividend of $176m for the year after posting a pre-tax profit of $122.3m.
Yum! Brands acquired KFC Holdings BV during 2023 as part of a reorganisation within the wider group. Yum! Restaurant Holdings, a holding company for the group's investments, did not generate a turnover.
Sources: [1] BBC News [2] The Guardian [3] Sky News
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