Yum! Brands Suspends Stock Buybacks, Announces Plan to Aid Franchisees
Yum! Brands (NYSE: YUM) is making a major effort to keep its network of franchised Taco Bells, KFCs, and Pizza Huts afloat until the coronavirus outbreak abates. The company announced on Tuesday it has suspended its $2 billion stock repurchasing program. In addition, the company has borrowed $525 million via a revolving credit agreement, money that it intends to use to assist struggling restaurant owners.
Many of them are likely going to need it. Of the more than 50,000 quick-service restaurants in its network, roughly 7000 have been temporarily closed in response to the pandemic. Those that remain open are experiencing a dropoff in customer traffic -- natural, given that much of the world is in the midst of voluntary or mandatory lockdowns that have limited restaurant visits.
Image Source: Getty Images.
Source Fool.com
