The $934-Million Recipe For Success: KFC Meets Pizza Hut |

Updated: January 02, 2026 11:29

Image Source: WOWNEWS24X7

India’s KFC and Pizza Hut operators, Devyani International and Sapphire Foods, have announced a $934-million merger, creating one of the largest quick-service restaurant (QSR) companies in the country. The share-swap deal consolidates over 3,000 outlets, aiming to strengthen competitiveness against McDonald’s and Domino’s amid rising costs and slowing same-store sales.

India’s fast-food industry witnessed a landmark consolidation as Devyani International Ltd. and Sapphire Foods India Ltd., the franchisees of Yum! Brands’ KFC and Pizza Hut, announced a $934-million merger. The deal, structured as a share-swap, will see Devyani issue 177 shares for every 100 shares of Sapphire, creating a unified powerhouse in the quick-service restaurant (QSR) space.

The combined entity will operate more than 3,000 outlets across India and overseas, bringing KFC and Pizza Hut under one umbrella. Backed by Yum! Brands Inc., the merger is expected to streamline operations, reduce duplication, and enhance bargaining power in a highly competitive market.

Industry analysts note that the move comes at a time when QSR chains are grappling with rising input costs, margin pressures, and slowing same-store sales. Competition from McDonald’s and Domino’s has intensified, while consumer spending on non-essential items has softened. The merger is seen as a strategic response to these challenges, enabling scale efficiencies and stronger brand positioning.

Key Highlights

Devyani International and Sapphire Foods announce $934-million merger.

The deal is structured as a share-swap: 177 Devyani shares for 100 Sapphire shares.

Combined entity to operate over 3,000 KFC and Pizza Hut outlets.

Merger aims to tackle rising costs, margin pressures, and slowing sales.

Competition from McDonald’s and Domino’s remains a key industry challenge.

Backed by Yum! Brands, the deal strengthens India’s QSR ecosystem.

The merger marks one of the largest consolidations in India’s food services sector, positioning the new entity to leverage economies of scale, expand digital delivery platforms, and reinforce consumer loyalty. As India’s QSR market continues to evolve, this deal could redefine the competitive landscape for global fast-food brands in the country.

Sources: Hindustan Times, Livemint, Straits Times

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