Yum Brands' KFC To Acquire More Than 200 KFC Restaurants From EG Group For Undisclosed Sum

(RTTNews) - Yum! Brands, Inc. (YUM), a global franchiser of quick service restaurants, Wednesday announced that its KFC division has agreed to buy more than 200 KFC restaurants from EG Group, the company's largest KFC franchisee in the UK and Ireland.

The financial details of the deal have not been divulged.

The transaction is expected to accelerate KFC's growth strategy in the large and growing UK and Ireland chicken market, with high average unit volumes and robust margins.

KFC UK and Ireland sales were up 7 percent and same-store sales up 5 percent across its 1,040 restaurants according to the company.

Upon completion of the acquisition, EG's KFC UK and Ireland business which consists of more than half of drive-thrus and 7,800 team members will come under KFC UK and Ireland management.

Yum! expects finalizing the transaction by the end of the first half of 2024 that will be funded with the available cash. The acquisition will not have any impact on Yum!'s 2024 financial results. On Tuesday, Yum! Brands shares closed at $124.38, down 1.01% on the New York Stock Exchange.