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KFC Revives ‘Kentucky Fried Chicken’ Name

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From Reuters

KFC is putting the “fried” back in Kentucky Fried Chicken.

After 14 years of trying to downplay the image of its food as greasy and unhealthful by calling itself KFC, the chain on Wednesday opened a new restaurant in its hometown of Louisville, Ky., under its former name and plans 50 more this year.

The move, the chain’s most aggressive yet in its two years of trying to revitalize U.S. sales, is part of a broader plan to “move the brand into the future” by drawing on its Southern roots, the company said.

KFC, which along with Taco Bell and Pizza Hut is one of Yum Brands Inc.’s three flagship chains, has been a thorn in the company’s side in recent years.

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Sales at U.S. KFC restaurants open at least a year, a key retail measure known as same-store sales, have been either negative or flat in 10 of the last 16 months, and an effort last year to introduce more-healthful fare flopped with customers.

In recent months, however, the chain’s fortunes have improved. Last month, same-store sales at KFC rose 10%, partly because of the introduction of a 99-cent chicken sandwich.

KFC hopes the new, more upscale restaurants will help continue that momentum.

The new Louisville restaurant has a free digital jukebox and low-set tables with ottomans and features a younger, apron-clad image of the chain’s founder, Colonel Sanders. The menu also has been revamped.

Yum also reported first-quarter earnings Wednesday. The company said profit rose 13% to $161 million, or 53 cents a share, from $142 million, or 47 cents, a year earlier. Sales rose 4.3% to $2.05 billion.

Shares of Yum Brands fell 91 cents to $41.30 on the New York Stock Exchange.

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