A. The International Dining Organization (IMC), Operator Baked chickenDo it Single And from Pizza Hut It sells KFC’s operation control in Brazil, and the brand has its portfolio in 2019.
The company creates a joint venture with Kentucky Foods Chile, which runs over 550 KFC stores in Latin America. Million pays 35 million for 58.3% in the new partner joint venture, while IMC operates 41.7% Value Million is 60 million for the operation of fried chicken brand.
Considering the current dollar price and trading session on Wednesday, 26, the transaction is exceeding the market value of IMC.
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“The future of KFC in Brazil is very optimistic. We bring an experienced partner to helping the brand growth, improve the operation and get more levels,” said IMC’s CEO Alexandre Santoro. In addition to the formation of JV, the company today announced the exit of CFO and Rafael Bosola for personal reasons. Natalia Lacawa, former carvales and CFO of Arklock Technology in place of executive.
Trying to reorganize out -off -home food carrier. He left activities like Panama in 2022 and restored some of his brands like the roasted chicken.
In late 2024, it reduced the 7%loss to R $ 76.3 million. The movement was more severe in the fourth quarter, with losses of 37%to $ 47.8 million.
The KFC operation of the exit balance from the balance is first feeling in the balance – the beginning of the agreement is expected to take place at the beginning of the third quarter. Today, this brand produces $ 400 million for the group, which is one of its leads. The company’s income increased by only 2% by 2024, reaching $ 2.2 billion, with the negative impact of operations in the United States.
According to Santoro calculations, the loss of KFC revenue is about 10% lower on the IMC’s operational EBITDA, which can be transferred to JV. However, this reduction will be replaced to a number of positive aspects such as debt reduction, improving capital construction and elimination of investment in the future required for the expansion of KFC, which is considered by the new partner.
“When we sold some of this operation, we have reduced our debt and improve our capital structure in Brazil without giving up the growth capacity of KFC in Brazil,” the executive said. Currently, the financial leverage on EBITDA is 2.4 times the net debt, which should be reduced with the entry of sales.
When the company began to think about the partnership, he saw that the KFC 50 shops from 230 to 230 were seen and the profile of the stores was changing.
“The decision to seek a strategic partner came from an internal analysis of growth likelihood for other BMI businesses such as baked chicken. This movement is a way to ensure KFC growth without investing in other brands,” said Santoro, who has ordered IMC since 2021.
According to the executive, the future of KFC in Brazil is “very optimistic”. IMC has a brand’s franchised master license! Brands, up to 2032 and from the franchises that come with the majority of current expansion.
“We are bringing an experienced partner to collaborate, improve the operation, improve the operation and get more levels. JV is very focused and dedicated to the KFC brand, which increases its growth.” The evaluation of the BMI is that the most potential KFC growth in Brazil comes from a new store models such as street and drive-thru, which requires more investment and even more returns.
Meanwhile, IMC focuses on improving profitability. He closed the deficit stores and reduced promotions in delivery activities, which helped to gain margin: adjusted EBITDA increased by 14% compared to the previous year, the margin reached 13.6%, which was 14.2 percent points advance.
“As for 2025, we are continuing to grow our focus, improve margins and grow in a balanced way, without compromising future investments,” said Santoro. The net result, however, takes more time to come to blue. “Perhaps in 2025, it has not yet benefited. But it will be a natural consequence of improving fundamentals.”
