KFC Brings Colonel Sanders Back in New Ad after 20 Years - Analyst Blog

Yum! Brands, Inc.’s YUM KFC is looking to return to its roots as it is bringing back its founder, Colonel Harland Sanders, to its advertising campaigns after a hiatus of nearly two decades.

Colonel Sanders – who expired nearly 35 years ago – will be played by popular actor Darrell Hammond in TV commercials, to be aired from May 25. This advertisement is reportedly celebrating KFC’s 75th anniversary.

KFC also plans to redesign its restaurants across the country over the next few years. The company’s Hikes Point, Louisville and Las Vegas, NV locations have already been redesigned. Reportedly, these revamped outlets will have light fixtures shaped like chicken buckets and quotes from Colonel Sanders hanging on the wall. The company is also changing the packaging and introducing new menu items, like baked beans and lemonade.

KFC will also introduce a new and improved online site along with a website called ColonelSanders.com. The latter will feature an interactive digital experience with stories about the various stages of the Colonel's life.

Yum! Brands’ decision to create a new advertising image comes in the wake of the shift among the U.S. millennials toward fast casual chains from quick service chains. We believe that this revamped marketing campaign is an effort by the company to bring back the millennial guests.

Yum! Brands has a Zacks Rank #2 (Buy). Other well-ranked stocks in the same sector include BJ's Restaurants, Inc. BJRI, Zoe's Kitchen, Inc. ZOES and Ruby Tuesday, Inc. RT. All these stocks sport a Zacks Rank #1 (Strong Buy).

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