KFC has launched a major menu overhaul. Will this help it regain market share?

The fast-food chain KFC (part of Yum Brands) is launching a major overhaul of its menu and restaurant format in an effort to strengthen its position amid growing competition in the fast-food market. The company plans to expand its line of boneless chicken dishes, increase its selection of sauces, and update the design of its restaurants.

The new strategy, announced by KFC on June 15, is part of what company executives are calling the “next chapter” in the brand’s development. The chain is gradually shifting its focus from traditional chicken to boneless chicken products, KFC Concept Director Christophe Poirier said in an interview with CNBC.

Specifically, the company plans to expand its range of such products and update the recipe for its existing line of boneless chicken. At the same time, the restaurant is expanding its selection of sauces. The company already offers more than 20 sauce options, including unusual flavor combinations. The updated menu will be available as early as June at the chain’s restaurants in the UK and Ireland.

“In an increasingly competitive market, we have a great opportunity to set the standard for what modern fast food should be,” said KFC CEO Scott Mezvinksi.

KFC also expects to boost beverage sales. Under its new sub-brand, Kwench by KFC, the company is offering lemonades, iced coffee, and drinks with tapioca pearls. These drinks are already available at select restaurants in the UK and Ireland, and this year they will be added to the permanent menu in Australia and Canada.

The renovations will also extend to the restaurants themselves. This summer, a restaurant featuring an “open-concept” design will open in Texas, and this fall, a two-story “immersive” restaurant will open in Dubai, the company announced. The company hopes to make a visit to the new restaurant comparable to attending a concert at the Sphere, one of the world’s largest entertainment venues in Las Vegas, Poirier said. The chain wants to distract diners from their smartphones and focus on the restaurant experience itself, notes CNBC.

These changes are taking place against a backdrop of intensifying competition in the chicken fast-food market. The pressure on KFC’s U.S. operations is particularly noticeable. According to Barclays data cited by CNBC, while the chain held 16% of the U.S. chicken fast-food market in 2021, trailing only Chick-fil-A, by 2024 its market share had shrunk to 9.4%. During this time, KFC was overtaken by Popeyes and Raising Cane’s, dropping from second to fourth place. In addition, KFC has recently faced competition in the market from giants such as McDonald’s—which is also betting heavily on the growing global popularity of chicken, notes CNBC.

To turn around its financial performance in the U.S. market, Yum Brands appointed Catherine Tan-Gillespie as president of KFC in the U.S. over a year ago. Among her initiatives are expanding the menu with value-priced meal deals and bringing Colonel Sanders back into marketing campaigns. According to the top executive, the chain has been showing growth in same-store sales in the U.S. for three consecutive quarters.

At the same time, KFC’s international business—along with the Taco Bell brand—remains one of the main drivers of growth for Yum Brands, notes CNBC. In the first quarter of 2026, KFC’s comparable sales rose 2% compared to the same period last year, with China and Europe remaining the brand’s largest markets by sales volume, while the U.S. ranks third in this regard.

In trading on Monday, June 15, Yum Brands shares rose 0.8%, and year-to-date, the stock has gained 2.5%. The average target price for the stock is $174, implying 13% upside potential relative to the close on June 12.

According to MarketWatch, the consensus among analysts regarding Yum Brands shares remains cautious: 12 analysts recommend buying the company’s stock, while 17 others recommend holding it in one’s portfolio.

This article was AI-translated and verified by a human editor