The Shares of one of India’s top quick-service restaurant operators surged up to 11% on Thursday after reports suggested that Yum! Brands, the U.S.-based parent of KFC and Pizza Hut, is considering a merger of its two Indian franchise partners.
With a market capitalization of Rs 11,100 Crores, the share price of Sapphire Foods India Ltd was trading almost 11% up to hit an intraday high of Rs 355.00 per share from its previous closing price of Rs 320.55 per share.
Whats The News
Yum! Brands, the American parent of KFC and Pizza Hut, is exploring a potential merger between its two franchise partners in India Devyani International and Sapphire Foods.
Both companies currently operate KFC and Pizza Hut outlets across the country, and the move aims to consolidate operations under a single entity for greater efficiency and brand control.
As part of the proposed merger, Devyani International may acquire all franchise rights for KFC and Pizza Hut from Sapphire Foods or bring all KFC outlets under its own brand umbrella.
A share swap ratio of 1:3 is reportedly being considered, meaning Sapphire Foods shareholders would receive one share of Devyani International for every three shares they own. Devyani International is already the largest Yum! franchisee in India and also operates Costa Coffee outlets across the country.
Sapphire Foods is one of the largest franchise operators for Yum! Brands Inc. in the Indian subcontinent. The company manages a total of 963 quick-service restaurants across India, Sri Lanka, and the Maldives.
Its portfolio includes 502 KFC outlets, 451 Pizza Hut restaurants, and 10 Taco Bell locations. Sapphire Foods plays a key role in bringing global fast-food brands to customers across the region.
The company reported a revenue of Rs 2,882 crore in FY25, up by 11.1 percent from its FY24 revenue of Rs 2,594 crore. Coming to its profitability, the company reported a net profit decline of 67.3 percent to Rs 17 crore in FY25 from Rs 52 crore in FY24.
Written By Rohan Pandey
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