Yum brands with Taco Bell, KFC, and Pizza Hut logo (image source: (Yum! Brands Inc. (WUKY), 2017))
Updated 5/3/2023: included class-action lawsuit and franchisee information
One-sentence summary:
Yum! Brands (KFC, Taco Bell, Pizza Hut) January 2023 ransomware attack potentially breaches employees’ data and briefly shuts down 300 locations, results in a class-action lawsuit.
Who was involved?
Yum! Brands, Inc., parent of KFC, Pizza Hut, Taco Bell, and Habit Burger Grill, Charter Foods, at least 109,194 Charter Foods employees, and a threat actor.
What was the timeline?
January 13, 2023: Yum! Brands is hit with a ransomware attack
January 18, 2023: Yum! Brands announces the ransomware attack
March 9, 2023: Yum! Brands discovers the breach
April 7, 2023: Yum! Brands begins victim notification
April 14, 2023: Yum! Brands is sued in federal court in Kentucky via a class-action lawsuit
What occurred?
Yum! Brands suffered a ransomware attack in January 2023, leading to the potential breach of employees’ personal information, including “Driver’s License Number or Non-Driver Identification Card Number” (Gatlan, 2023; Kim, 2023). Almost 300 UK-based restaurants were affected (Gatlan, 2023; Yum! Brands, 2023a, p. 13). A federal, class-action lawsuit has been filed in Kentucky against Yum! Brands (Stinson v. Yum! Brands, Inc., 2023). A franchisee, Charter Foods, was also involved in the breach, and a separate class-action lawsuit has been filed against it as well.
Estimated costs:
Associated incident response costs, breach notification costs, “leading digital forensics and restoration teams,” operational and lost business costs (“fewer than 300 restaurants shut down in one market for one day”), 2 years IDX identity services with $1 mil. insurance policy, M-F call center
Involved laws:
State: Maine: 10 M.R.S.A. § 1346
Root cause:
TBA or N/A (see disclaimer)
Lessons learned:
TBA or N/A (see disclaimer)
Sources:
Gatlan, S. (2023, April 10). KFC, Pizza Hut owner discloses data breach after ransomware attack. BleepingComputer. https://www.bleepingcomputer.com/news/security/kfc-pizza-hut-owner-discloses-data-breach-after-ransomware-attack/
Kim, A. (2023). Data Breach Notifications. In Privacy, Identity Theft and Data Security Breaches. Office of the Maine Attorney General. Retrieved April 12, 2023, from https://apps.web.maine.gov/online/aeviewer/ME/40/b85bfcfb-4ff7-419e-8dd2-95e8f41a5ad1.shtml
Stinson v. Yum! Brands, Inc., Case No. 3:23-cv-00183-DJH (W.D. Ken. 2023). https://www.classaction.org/media/stinson-v-yum-brands-inc.pdf
Yum! Brands. (2023a). YUM! BRANDS 2022 ANNUAL REPORT: UNLOCKING OPPORTUNITY FOR GOOD GROWTH. In EDGAR | Company Filings. U.S. Securities and Exchange Commission. Retrieved April 12, 2023, from https://www.sec.gov/Archives/edgar/data/1041061/000119312523095287/d535046dars.pdf
Yum! Brands. (2023b). Yum Notification Letter.pdf. In Data Breach Notifications. Office of the Maine Attorney General. Retrieved April 12, 2023, from https://apps.web.maine.gov/online/aeviewer/ME/40/b85bfcfb-4ff7-419e-8dd2-95e8f41a5ad1/32f8fb7d-87b2-43ba-a5fd-a7b95e3872e2/document.html
Yum! Brands Inc. (WUKY). (2017, November 2). untitled. wuky.org. https://www.wuky.org/local-regional-news/2017-11-02/yum-brands-report-major-profit-growth
