KFC parent Yum! Brands halts development and investment in Russia

By Akshay Kedari  | Date: 2022-03-09

KFC parent Yum! Brands halts development and investment in Russia

As per reliable sources, KFC Corporation and Pizza Hut’s parent company Yum! Brands Inc. has halted its investments in Russia, a key market that had helped the food major achieve record development in the preceding year.

However, Yum! Brands refrained from commenting whether it would permanently limit or temporarily pause its current restaurant operations in Russia amidst the Ukraine invasion.

The American fast-food corporation, with over 50 Pizza Hut and 1,000 KFC locations in Russia cited on its website for suspending all operations and investments in the country as it continues to assess further options.

Notably, the restaurants are all independent franchisees meaning Yum! Brands neither control their management nor has much exposure to operational and financial risks. 2021 was found to be a record development year for KFC after opening new restaurants in Russia, India, and China.

For instance, KFC internationally opened more than 2,400 gross units last year. Meanwhile, the fast-food giant was opening about 100 restaurants annually and had planned to continue a similar expansion strategy for this year.

It is also worth mentioning that many companies have begun to withdraw their business from Russia amidst the Ukraine invasion and impending sanctions. Some companies have also shown their support to Ukraine through donations.

Meanwhile, global brands like PepsiCo Inc. and McDonald’s Corp. are also exploring plans to halt their operations in Russia given the growing pressure from investors.

McDonald’s has already claimed to have temporarily shut down all 847 restaurants in Moscow, including the one at Pushkin square. Although the KFC-rival claimed that it would continue to pay the salaries of its 62,000 employees in Russia.

Starbucks and Coca-Cola have also joined PepsiCo and McDonald’s in suspending their operations, although some food manufacturers will continue to sell essentials like baby food and milk.

Source Credits:

https://money.usnews.com/investing/news/articles/2022-03-08/kfc-parent-yum-pausing-development-in-russia-a-key-market#:~:text=March%208%2C%202022%2C%20at%209%3A18%20a.m.&text=NEW%20YORK%20(Reuters)%20%2D%20Yum,last%20year%2C%20the%20company%20said.

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Google Fi confirms data breach, leaking millions of customer’s data

Google Fi confirms data breach, leaking millions of customer’s data

By Akshay Kedari

Google Fi, Google's cell network operator, has reportedly revealed a data breach, which is most likely related to the T-recent Mobile's security disaster, which allowed hackers to leak millions of customers' personal information. The p...

European semiconductor giant ASML forecasts a sales surge for 2023

European semiconductor giant ASML forecasts a sales surge for 2023

By Akshay Kedari

Dutch semiconductor company ASML has reportedly forecast a revenue jump for the year 2023 as the global semiconductor industry anticipates a reacceleration of growth during the second half of this year. According to the firm, its net sales  f...

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

By Akshay Kedari

Following this funding, Interfor's long-term debt will hold a weighted average interest of 5.30% Interfor registered a Net Debt to the Invested Capital ratio of nearly 10% as of October 31, 2022 Interfor Corporation, one of the world...

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

By Akshay Kedari

Leading real estate services and investment company, ESR Group Limited, has recently announced that its exclusively-owned subsidiary, ARA and the Export-Import Bank of China have inked a breakthrough collaboration in a deal worth USD 1 billion infras...

Circularise nabs $11M to bring circular economy to industrial supply chains

Circularise nabs $11M to bring circular economy to industrial supply chains

By Akshay Kedari

Leading software platform, Circularise recently announced that it has raised $11.3 million (€11 million) in funding as part of its Series A round in a bid to advance its mission to bring a circular economy to industrial supply chains. The fun...