KFC, Pizza Hut Operator Signs Deal To Set Up Food Courts At Railway Stations, Shares Gain

Devyani International, the franchise owner of KFC and Pizza Hut in India, has inked a joint venture agreement to set up food courts in railway stations.

What Happened: The firm entered an agreement with R.K. Associates & Hoteliers, a licensee of IRCTC, to invest in a joint venture. Devyani will own 51% of the joint venture while R. K. Associates will hold 49%.

The joint venture will develop, operate and maintain of Food Courts, standalone food and beverage outlets and lounges within the existing or future territories of railway stations.

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The move could give Devyani a competitive advantage over competitors as it can leverage the Railways’ vast footprint across the country and its massive footfall.

Devyani also announced its results for the second quarter, earning a net profit of ₹35.82 crore for the quarter ended September, down 36.9% from the ₹56.83 crore it earned last year.

The company’s total revenue rose 9.63% to ₹819.47 crore from ₹747.42 crore that it made last year.

Price Action: Devyani International’s share price was up 1.61% at ₹192.90 in afternoon trade on Tuesday.

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