Colonel Sanders Sold KFC For $2 Million Only To See The New Owners Cash Out For $285 Million Few Years Later — Why He Then Sued Them
Harland Sanders, aka Colonel Sanders, built Kentucky Fried Chicken into a roadside sensation, then sold it in 1964 for just $2 million, keeping a lifetime salary and the face of the brand. The 73-year-old then also secured a $40,000 annual stipend, later indexed to inflation, and a contract guaranteeing his white-suited likeness in advertising, transforming him into the world's most recognizable living fast-food pitchman.
Seven years later, investors flipped the chain to packaged-foods giant Heublein Inc. for $285 million, an eye-popping payday that left the colonel feeling sidelined.
What Happened: In 1971, WFAA, a Dallas-based television station, interviewed Colonel Harland Sanders, where he reflected on the subsequent sale of KFC for a significantly larger sum, highlighting his feelings of being “left out.”
The 1971 deal capped breakneck growth from about 600 outlets at the time of Sanders' sale to more than 3,500 worldwide. The octogenarian believed they had ruined his recipes, blasting cost-cutting that traded his scratch gravy for what he called "wallpaper paste."
He even sued KFC's new owners for $122 million over recipe and quality changes. The case settled for roughly $1 million and a promise that he could keep training cooks.
What To Know: Today, Sanders' likeness fronts a very different bird. KFC pushed past 30,000 restaurants in 2024 after opening nearly 2,700 units in a single year, giving it the largest global footprint in quick service. The brand now spans 145 countries and territories, from original-recipe buckets in Kentucky to Christmas dinner boxes in Japan priced around $45.
Parent company Yum! Brands says KFC generates roughly half its divisional operating profit and is targeting 5% annual unit growth. Expansion plans include a £1.6 billion investment drive in Britain and shifting U.S. headquarters from Louisville to Plano, Texas, to streamline operations. Analysts expect Yum's self-described "algorithm year" to lift core operating profit 8% in 2025 as KFC modernizes kitchens and accelerates digital sales.
Sanders died in 1980 at 90, still touring stores in his white suit to enforce standards. The mustachioed colonel may have disowned the gravy, but his 11 herbs and spices remain a global staple.
Photo Courtesy: Shutterstock.com
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