Devyani says KFC posted strongest SSSG in 14 quarters
4.9% same-store sales growth at KFC, 200-225 net new stores guided for FY27. Transcript adds color on Sapphire Foods merger and tech investments.
What's new
- KFC posted 4.9% SSSG, the chain's best performance in 14 quarters.
- FY27 store addition guidance set at 200-225 net new stores.
- Sapphire Foods merger integration and new management structure detailed.
Why it matters
KFC same-store growth of 4.9% suggests the brand is gaining traction after a soft patch. The store addition pipeline and merger update give investors clearer targets for FY27. The transcript confirms operational momentum without surprising the market materially.
What we're watching
- Execution of the 200-225 net new store plan for FY27.
- Sapphire Foods merger integration milestones and cost synergies.
- Pizza Hut and Costa Coffee same-store trends for diversification.
The full read
Devyani International's Q4 FY26 earnings transcript does not change the financial picture disclosed on May 15, but it adds meaningful operational color. KFC delivered 4.9% same-store sales growth — the strongest print in 14 quarters — suggesting the chain is shaking off earlier softness. Management guided 200-225 net new stores for FY27, up modestly from FY26's rollout, and shared details on the Sapphire Foods merger integration, including the new management team. Technology investments were also flagged as a priority. None of this is a surprise to markets that saw the headline numbers, but the transcript confirms that the operating trajectory is what investors hoped for.