Yum Brands exits Russia altogether with deal to sell KFC stores

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NEW YORK — Yum Brands Inc said on Monday it reached an agreement to sell its KFC restaurants in Russia to a local operator there, paving the way for a full exit from the country.

The restaurant operator, which also owns the Taco Bell and Pizza Hut brands, will transfer ownership of its Russian KFC locations, operating system and master franchise rights to Smart Service Ltd, which is operated by franchisees existing KFC Russians Konstantin Yurievich Kotov and Andrey Eduardovich Oskolkov, Yum said in a press release.

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The buyer will be responsible for renaming the restaurants and retaining existing employees.

Many Western companies sold their Russian assets to local leaders as they struggled to comply with sanctions related to Russia’s invasion of Ukraine.

Yum’s transaction still needs to be approved by regulators. Upon completion, Yum « will have ceased its commercial presence in Russia, » the company said.

In July, Yum said it transferred ownership of its Pizza Hut assets to a local Russian operator. (Reporting by Hilary Russ; Editing by Chizu Nomiyama)