Yum Brands Inc.’s effort to sell its KFC restaurants and franchise rights in Russia to a local buyer remains in the works as the company works to exit fully from Russia, Reuters reported.
“As always, we remain focused on the safety of our people in the region and will continue to support our teams in Ukraine while evaluating the ways Yum! Brands can make a positive impact in the region,” a recent press release stated.
Yum Brands initially launched KFC in Russia in 1995 and has since operated approximately 1,000 locations across the country, all of which are owned by independent owners under license or franchise agreements.
In other recent announcements, Yum Brands finalized the sale of its Pizza Hut business in Russia to a local operator with plans to rebrand the restaurants. The financial terms of the transaction have not been disclosed.
Similar departure confirmations have been made by dozens of Western companies in recent weeks.
“Western companies leaving Russia over the invasion of Ukraine have sped up the pace of their exits in recent weeks as Moscow is advancing a new law that would allow it to seize assets and impose criminal penalties on foreign firms,” a recent Reuters report said.
The transaction is confirmed after McDonald's Corp sold its Russian business operations earlier this year and began rebranding its existing locations last month.
According to recent Russian media reports, the business was acquired by Noi-M at a value of 300 million roubles ($4.92 million). The company is associated with the operator of the Russian franchises of Costa Coffee and T.G.I. Fridays.