Yum! Brands Moves KFC's US Headquarters To Texas In Strategic Shift

Yum! Brands, Inc. YUM shares are trading relatively flat on Wednesday.

Yesterday, the company announced that it is making a strategic move to streamline operations by designating two brand headquarters in the U.S.

The new headquarters will be located in Plano, Texas, and Irvine, California.

Since the COVID-19 pandemic, many companies have reconsidered their corporate headquarters locations, seeking lower taxes and adapting to remote work, CNBC reports. A 2023 CBRE report found that Texas is the top choice for relocations due to its business-friendly policies.

As part of the recent plan by Yum! Brands’, KFC U.S. corporate office employees based in Louisville, Kentucky, will be relocated to the KFC and Pizza Hut Global headquarters in Plano.

Additionally, U.S.-based remote employees will also be asked to relocate to the appropriate campuses based on their roles.

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Taco Bell and Habit Burger & Grill will continue to operate from their current base in Irvine.

According to Benzinga Pro, YUM stock has gained over 9% in the past year. Investors can gain exposure to the stock via First Trust Exchange-Traded Fund VI First Trust New Constructs Core Earnings Leaders ETF FTCE.

To honor its Kentucky roots, Yum! Brands will maintain a presence in Louisville with KFC’s headquarters and contribute a $1 million endowment to the University of Louisville's College of Business.

This fund will support Yum!-sponsored scholarships for students across Kentucky and contribute to the Yum! Center for Global Franchise Excellence.

The company expects the relocation of about 100 KFC U.S. corporate roles over the next six months, while 90 remote employees will relocate over 18 months.

CEO David Gibbs emphasized that these changes would help the company maximize its culture, talent, and global growth, enhancing the competitive edge of Yum! Brands’ iconic restaurant brands.

“Ultimately, bringing more of our people together on a consistent basis will maximize our unrivaled culture and talent as a competitive advantage,” Gibbs said in a press release. 

In 2020, Papa John’s International, Inc. moved its headquarters from Louisville to Atlanta but chose to keep the old building for its remaining employees in Louisville, CNBC further noted.

Price Action: YUM shares are trading higher by 0.15% to $147.35 at last check Wednesday.

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