Devyani International Vs Sapphire Foods: How Two KFC And Pizza Hut Operators In India Stack Up

While one Indian partner of Yum! Brands made its debut on the stock market, the world’s biggest restaurant operator’s second India franchise operator has also filed for its initial public offering.

Devyani International Ltd.’s shares debuted at a premium of 57% over the initial public offering price. Sapphire Foods India Ltd. filed its draft red herring prospectus with the market regulator Securities and Exchange Board of India.

The two operate KFC, Pizza Hut and Taco Bell stores in India. In addition, Devyani runs Costa Coffee outlets. Both have non-exclusive rights to operate in India with no restrictions.

While Devyani IPO comprised a fresh issue and offer for sale, Sapphire’s offer is just sale of shares by existing investors.

Here’s how the two Indian partners of Yum! Brands stack up:

Devyani International is the largest operator of outlets of Yum! Brands, but Sapphire Foods is catching up on store count.

Store Concentration

Sapphire Foods has a higher concentration of stores in Maharashtra, Tamil Nadu and Karnataka, Bangalore and New Delhi are major markets for Devyani International.

The pandemic hurt demand and business for both the Yum! Brands partners, with same-store-sales contracted in FY20 and FY21.

Devyani International and Sapphire Foods earn similar gross margins.