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• Company said it would redirect any profits from Russian operations to humanitarian efforts
Yum Brands Inc (NYSE: YUM) on Tuesday said it is in talks to sell its KFC restaurants and franchise rights in Russia to a local buyer, after which it plans to exit the country entirely.
The company, in a press release, said it is in “advanced stages of transferring ownership of its KFC restaurants, operating system and master franchise rights, including the network of franchised restaurants.”
Yum opened its first KFC restaurant in Russia in 1995 and currently has about 1,000 outlets in the country, nearly all of which are operated by independent owners under license agreements.
The company also said it had completed the sale of its Pizza Hut business in Russia to a local operator who is re-branding the restaurants.
Reuters, citing local Russian media, reported that Noi-M, the company linked to the operator of the local franchises of Costa Coffee and T.G.I. Friday’s has bought Pizza Hut for 300 million roubles ($4.92 million).
Last month, the US burger chain McDonald’s Corp (NYSE: MCD) sold its Russian operation to Alexander Govor, a local licensee, making it the most significant exit by a global brand after operating for more than three decades.
Western companies are seeking to exit Russia with the prospect of new laws being passed in the coming weeks allowing Moscow to seize assets of foreign firms and impose criminal penalties, encouraging some businesses to accelerate their departure plans.
Picture Credit: PYMNTS
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