KFC is a global leader in the chicken restaurant category. It ended the first quarter of 2025 with almost 32,000 restaurants worldwide, which rang up almost $34.5 billion in sales in 2024. KFC is part of the diversified global restaurant operator Yum! Brands (YUM -0.34%), which has more than 61,000 restaurants in 155 countries and territories.
Its concepts are:
- KFC: A global leader in the chicken category, with 32,000 locations and $34.5 billion in total system sales in 2024
- Taco Bell: A global leader in Mexican-style food, with over 8,700 restaurants and $17.2 billion in annual sales
- Pizza Hut: A global leader in the pizza category, with almost 19,800 restaurants and $13.1 billion in yearly sales
- The Habit Burger Grill: A fast-casual restaurant specializing in chargrill burgers and sandwiches, with more than 380 locations and $700 million in sales
KFC is by far the biggest concept within Yum! Brands, with more than half its unit count and system sales. It's also the fastest-growing concept within the company, with a 7% increase in its store count in 2024.
That growth has likely led many of its fans to wonder whether they can buy stock in the fast-food company. While you can't invest directly in KFC, you can buy shares of Yum! Brands to participate in KFC's growth. Here's a closer look at how to invest in KFC through its parent, Yum! Brands.
How to buy KFC stock
People interested in investing in KFC through its parent, Yum! Brands, will need to take a few steps before becoming shareholders. This step-by-step guide will show you how to add the restaurant stock to your portfolio:
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for Yum! Brands: Enter the ticker "YUM" into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest in KFC through Yum! Brands?
Take the time to research a company before purchasing shares. Doing your due diligence will hopefully confirm your investment thesis that the shares are a good long-term investment. However, you might discover something that changes your thoughts about buying shares.
To help jumpstart your research process, here are some reasons you might want to invest in KFC's parent, Yum! Brands:
- You are a fan of KFC and other Yum! Brands concepts (Taco Bell, Pizza Hut, and The Habit Burger Grill).
- You like that Yum! Brands is a more diversified restaurant concept.
- You want to invest in a restaurant stock that pays an above-average and growing dividend.
- You think Yum! Brands can deliver solid total returns over the long term.
- Buying shares of Yum! Brands would help diversify your portfolio by adding a restaurant stock.
On the other hand, here are some reasons you might decide not to buy shares of Yum! Brands:
- You only wanted to invest in KFC, not a company that also owns Taco Bell, Pizza Hut, and The Habit Burger Grill.
- You're not really a fan of the food sold by Yum! Brands' other concepts.
- You're seeking to invest in a restaurant that sells healthier food options.
- You're seeking a company with more growth potential than the already massive Yum! Brands.
- You want a dividend stock with a higher yield than Yum! Brands offers.
- You already own one or more restaurant stocks.
NYSE: YUM
Key Data Points
Is KFC profitable?
One important factor investors should research when evaluating a company is its profitability. That's because profit growth historically drives stock price performance over the long term. KFC's parent company, Yum! Brands, breaks out the financial results of its divisions, so we know KFC is very profitable.
In 2024, the division reported $3 billion in total revenues for Yum! (i.e., sales at company-owned stores, franchise and property revenues, and franchise contributions for advertising and other services) and almost $1.4 billion in operating profit. Revenue rose 10%, while KFC's profits increased by 4%. The company had a very strong operating margin of 44%.
KFC remained profitable in the first quarter of 2025. It posted $773 million in total revenues and $331 million in operating profit, increases of 22% and 6%, respectively.
Yum! Brands is also a very profitable company. The restaurant company reported $7.5 billion in total revenue (i.e., sales at owned locations, franchise and property revenues, and franchise contributions for advertising and other services) for 2024, representing a 7% increase from 2023. It also reported almost $1.5 billion in net income (about 7% less than the prior year).
The company's growing profitability enables it to continue expanding its store count while also returning cash to shareholders.
With an above-average yield and a solid history of increases, Yum! Brands is an appealing dividend stock offering above-average income and growth potential.
How to invest in KFC through ETFs
Not everyone wants to invest actively in a portfolio of stocks that they must manage. Many would prefer to be passive investors. And that's easy to do with exchange-traded funds (ETFs).
Exchange-Traded Fund (ETF)
Many ETFs own shares of KFC's parent, Yum! Brands. According to ETF.com, 271 ETFs held 55.3 million shares of Yum! Brands in mid-2025.
The Vanguard Total Stock Market ETF (VTI -0.20%) was the biggest holder, at 8.8 million shares. However, the broad market fund had a tiny allocation, so it's not the best ETF option for those seeking more exposure to Yum! Brands.
The Consumer Discretionary Select Sector SPDR Fund (XLY -0.25%) focuses on consumer discretionary stocks, such as those in the restaurant industry. Yum! Brands was one of the 51 stocks in mid-2025 (1.2% allocation). The fund had a very low 0.08% ETF expense ratio.
The AdvisorShares Restaurant ETF (EATZ -0.43%) is a noteworthy ETF for those interested in KFC, as it invests exclusively in the restaurant and food service industry. Yum! Brands was its 13th-largest holding in mid-2025, at 3.8% of its assets. The restaurant ETF had a high expense ratio of 0.99%.
Will KFC stock split?
KFC's parent, Yum! Brands, didn't have an upcoming stock split on the calendar as of mid-2025. The restaurant operator has split its stock twice, completing 2-for-1 stock splits in 2002 and 2007.
It's possible that Yum! Brands might split its stock again. Shares traded at roughly $150 each in mid-2025. Although that wasn't as high as some stocks, it is a higher price than some investors can comfortably afford. If the share price continues to rise, Yum! Brands might split its stock again to ensure it remains accessible to more investors.
The bottom line
KFC is part of Yum! Brands, a worldwide leader in the chicken, Mexican-style, and pizza categories. KFC is its top brand, comprising more than half of its restaurants and sales. It's also a big contributor to its profitability. The company's rising profitability should enable it to grow shareholder value through a rising stock price and dividend, making it a potentially compelling restaurant stock to own long term.
Related investing topics
FAQ
About the Author
