Devyani Shares Jump After $934 Million Merger With Sapphire Foods
Shares of Devyani International, the Indian operator of KFC and Pizza Hut, surged up to 8.3% after it announced a long-awaited $934 million merger with rival Sapphire Foods. The deal creates one of India’s largest fast-food operators, positioning the combined entity as a strong challenger to market leader Jubilant Foodworks, which runs Domino’s Pizza in the country.
Post-merger, the combined business will operate over 3,000 KFC and Pizza Hut outlets in India and overseas, narrowing the gap with Jubilant’s 3,480 Domino’s stores in India. Analysts at JP Morgan described the merger as a strategic positive, citing a simplified corporate structure, scope for cost savings, and faster decision-making that could improve competitiveness against peers and food delivery platforms.
The merger comes at a time when fast-food franchise operators are grappling with rising costs, slowing same-store sales, and pressure on margins as consumers curb discretionary spending. Both Devyani and Sapphire reported losses in the September 2025 quarter. While Devyani’s stock settled higher, Sapphire shares slipped, reflecting the agreed share-swap ratio, which analysts said closely mirrors recent market prices and limits valuation disruption.
Pic courtesy: google/ images are subject to copyright
