Devyani will hold only 51 % in RD via a complicated structure, with remaining 49 % being held by Temasek. RD operates 274 KFC stores across Thailand, out of more than 1000 KFC stores there. So there are other KFC franchisees too – namely Central Restaurant Group (CRG) and QSR of Asia (QSA). The acquisition appears quite cheap, perhaps because RD has consistently made losses. So the challenge will be to turn around the business into a profitable one. Burger King went nowhere with their Indonesia acquisition and Jubilant Foods with DP Eurasia. In the short term, even with a 51 % stake, this will add considerably to Devyani’s topline but will hit profitability at a consolidated level.
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