AmRest on 23 May entered into a head of terms agreement to buy the Kentucky Fried Chicken business in France from KFC France. The transaction is subject to a diligence review by AmRest and a definitive agreement is expected to be signed by 31 July 2018 with completion of the deal expected by 30 September 2018, a statement to the Warsaw Stock Exchange said. The head of terms agreement has an expiry date of 31 December 2018.
KFC France has 15 owned restaurants.
AmRest sees strong development potential for the KFC brand in Western Europe. The acquisition will consolidate its position as a leading restaurant operator in Europe and strengthen its partnership with Yum! Brands, the group said in a statement to the Warsaw Stock Exchange.
The news comes a week after AmRest announced that it would spend €240m on capex in 2018, and reiterated its plan to open more than 300 new restaurants in the full year, as it reported higher sales and profits for the first quarter, albeit below market expectations. Of the €240m capex budget, €180m is to be spent on new restaurants and the remainder on digital projects and renovations.
The Sunday trade ban in Poland – AmRest's single biggest market currently accounting for about 27% of its sales revenues and restaurant portfolio, according to the Q1 report – is having a negative impact, shaving “several percent” of sales revenue, AmRest’s board told a results briefing on 15 May. The group is taking steps to reduce this negative impact, notably by diversifying into delivery. It is also working on ways to cope with wage pressure.
As of 14 May 2018, AmRest had 1,662 restaurants in 15 countries.
|AmRest restaurants in Poland by brand, 2016-2017 and 14 May 2018|
|2016||Q1 2017||2017||14 May 2018|