Yum Brands raises fresh capital, launches employee support funds

Yum Brands, the global operator of KFC, Taco Bell and Pizza Hut, has raised fresh capital from bond investors, allowing the company to increase its size by $100m (to $600m).

The deal was part of a bid to improve its cash position ahead of a prolonged period of closure due to the coronavirus pandemic, with about 7,000 restaurants closed internationally and many others limited to drive-thru or delivery.

Earlier this month, the group carried out other various measures to support its cash position including halting its $2bn share buyback programme and tapping lenders for $525m under a revolving credit facility.

In an effort to support its staff, CEO David Gibbs has said he will forgo all salary for the rest of 2020, with money redirected to a general managers and employee relief fund.

Almost 1,200 general managers across its brands will receive a $1,000 one-time bonus in recognition of their extensive efforts amid the coronavirus pandemic.

The company has also launched a global employee medical relief fund to provide financial support for restaurant employees at company and franchise-owned stores who are diagnosed with or caring for someone with coronavirus.

“Today, Yum Brands announced it is directing additional money toward the Fund to help employees and franchise associates during this difficult time,” the company said in a statement on its website.

“Yum and brand employees and others can also donate to the Fund by going to www.yum.com/giverelief. Any funds that are raised that aren’t allocated to restaurant team members will be used to support other front-line workers and those facing food insecurity.”