Yum Brands Inc.’s KFC division has agreed to acquire more than 200 KFC restaurants in the U.K. and Ireland from EG Group, the biggest franchisee in those countries. The deal “represents a significant opportunity to accelerate KFC’s growth strategy in the large and growing UK and Ireland chicken market, with high average unit volumes and robust margins,” the companies said in a joint statement. No financial terms were disclosed, but the deal is expected to close by the end of the first half of 2024. The deal will be financed using cash flows from Yum
YUM,
and is expected to have an immaterial impact on Yum’s 2024 financial results. The stock has fallen 2.9% in the year to date, while the S&P 500
SPX,
has gained 19%.
