Yum Brands' India partners Sapphire, Devyani to merge, creating fast-food franchisee giant [CNBC]
Yum! Brands, Inc. (YUM)
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Source: CNBC
Sapphire Foods India said on Thursday it will merge with Devyani International , in a move that is likely to consolidate local franchisee partners of Yum Brands , the owner of KFC and Pizza Hut. The deal, first reported by the local Economic Times, comes as fast-food franchisees in India face slowing same-store sales and margin pressures, with consumers cutting back on dining out and ordering in amid high living costs. Devyani will issue 177 shares for every 100 shares of Sapphire, the latter said. Sapphire said the merger will create a scaled quick-service restaurant (QSR) platform by consolidating KFC and Pizza Hut operations, boosting efficiency, expanding domestic and international reach and strengthening growth and capital access.
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