KFC Operator Yum Brands Elevates CFO Chris Turner To Chief Executive: Retail Sentiment Drops

Yum Brands (YUM) on Tuesday named Chief Financial Officer Chris Turner as its next chief executive. Shares dropped 1.4%, and retail sentiment tracked lower.

Turner will take over on October 1, replacing David Gibbs, who had announced that he would retire by the end of the year. Gibbs will stay on as an advisor till December.

Turner has been at Yum Brands, which operates KFC, Pizza Hut, and Taco Bell food chains, for six years. Before that, he led PepsiCo's (PEP) retail and e-commerce business with Walmart (WMT) and was a partner at management consulting firm McKinsey.

On Stocktwits, the retail sentiment for the company dropped to 'neutral' as of early Tuesday from 'bullish' the previous day.

Yum Brands shares are up 4.4% year-to-date.

"I can't think of a better person to guide Yum! into its next chapter," said Gibbs, who has been at the company for 37 years.

Over the past few years, Turned and Gibbs have reportedly worked closely to expand the food chains globally and establish several initiatives, including the restaurant technology platform Byte by Yum and KFC's offshoot restaurant concept, Saucy.

The appointment comes as businesses face risks from an aggressive and evolving U.S. trade policy, which has dampened consumer spending to some extent.

However, last month, Yum Brands said it had seen a limited impact, with its Taco Bell outlet doing exceedingly well. 

The company also reiterated its long-term annual core operating profit target of an 8% increase.

Domestically, too, Taco Bell's sales are quickly growing, while Pizza Hut and KFC have reported declines in the U.S. in recent quarters.

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