May 18, 2005

Yum! Buys Russian Rival Rostik's

Sources claim that Yum! Brands intends to buy Russian fast food giant Rostik's, KFC's key competitor of KFC's in Russia. Although both companies have declined to officially confirm this report, those close to the negotiations suggest that a $18 million to $30 million deal could be sealed as soon as this week. Yum!, already a global fast food giant and parent to more than 33,000 Pizza Hut, Taco Bell and KFC restaurants worldwide, is speculated to purchase a 40-45% stake in Rostik's with an option to buy out the chain by 2010. An acquisition of Rostik's is just part of Yum!'s plan for global expansion. In February, Yum!'s CEO stated that the company intends to further expand its restaurant chains in China, where volume sales for KFC have surpassed those in the U.S.

Posted by franchiselawblog at May 18, 2005 10:36 AM