LOUISVILLE, Ky. (

TheStreet

) --

Yum! Brands

(YUM) - Get Report

is gearing up for a major expansion in India early next year as sales slow in the U.S. and China.

The restaurant chain hopes to position KFC and Taco Bell as youthful, hip brands in a nation of young consumers and plans a total of 1,000 restaurants by 2015, generating about $1 billion in annual revenue, the

Wall Street Journal

reports.

Yum! lags behind U.S. rivals

McDonald's

TST Recommends

(MCD) - Get Report

and

Domino's Pizza

(DPZ) - Get Report

in India. It currently operates 72 KFCs compared with McDonald's 170 outlets. Yum! has 158 Pizza Huts while Domino's has 274 stores.

"Our goal is to get India on the same growth trajectory we've had in China," where the company now operates 3,500 restaurants, Yum! CEO David Novak said in an interview with the

Journal

. Yum! plans to invest up to $120 million in the next five years apart from the $100 million it has invested already.

"We hope to break even by 2011 and be profitable thereafter," said Graham Allan, president of Yum!'s international division. "India is still a small piece of the pie, but our hope is to turn it into a major contributor to sales and profits."

Yum!'s same-store sales in China were flat during the fiscal third quarter from a year earlier, while same-store sales in the U.S. declined by 6%.

>>See our new stock quote page.