Yum Brands Expands In UK, Ireland with $2B Investment: Retail On The Sidelines

Yum Brands (YUM) announced on Tuesday plans to invest 1.5 billion pounds (about $2 billion) to expand its fast-food chains in the UK and Ireland.

The investment will be made over five years and is expected to create more than 7,000 jobs within its business and across its supply chain.

The company, which operates KFC, Taco Bell, and Pizza Hut chains, currently has over 1,000 outlets across the UK and Ireland, employing 30,000.

It plans to open a further 500 outlets over the next decade.

"The market is only expected to grow further, with consumer demand for fried chicken outstripping other quick service restaurant categories," Yum Brands said in a statement.

The company said that just under one-third of the earmarked capital will be used to open new outlets and refurbish 200 existing ones, while 583 million pounds will support the creation of new jobs.

The expansion comes at a time when businesses face risks from an aggressive and evolving U.S. trade policy, which has dampened consumer spending to some extent.

However, earlier this 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.

On Stocktwits, retail sentiment for Yum Brands was 'neutral.'

Yum Brands shares are up 7.4% this year.

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