Yum Brands (YUM) stock plummeted 5.11% in Friday's intraday trading, as the U.S. restaurant industry faces mounting pressure from recent tariff announcements. The drop comes amid a broader selloff in restaurant stocks, with industry peers also experiencing significant declines.

The sharp decline in Yum Brands' share price can be attributed to growing concerns over the impact of tariffs on consumer spending and potential job losses. Stifel analyst Chris O'Cull warned that "The announced tariffs pose the greatest risk to the restaurant industry through potential impacts on consumer demand." He added that higher costs for U.S. companies reliant on imports may lead to price increases or layoffs, affecting consumer spending even before any direct corporate action.

Furthermore, Yum Brands, which operates popular chains such as KFC, Pizza Hut, and Taco Bell, faces additional challenges due to its significant international presence. Analysts caution that sales could soften due to anti-American sentiment in overseas markets, potentially impacting the recent improvements in international trends experienced by some U.S.-based restaurant companies. This comes at a particularly sensitive time, as the market experiences its worst selloff in five years, leaving investors increasingly cautious about consumer discretionary stocks.