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KFC Heads to Russia

MOSCOW-Yum! Brands Inc. and Rostik Restaurants Ltd. invest $130 million to create a co-branded chicken chain.

By Dana Dubriwny | Updated on June 26, 2005

MOSCOW-Louisville, KY-based Yum! Brands Inc., owner of KFC, Pizza Hut, Taco Bell and Long John Silver’s, is teaming up with Rostik Restaurants Ltd. (RRL), owner of a popular Russian chicken restaurant chain, to develop a new co-branded concept in Russia and the Commonwealth of Independent States.

In accordance with the agreement, RRL is expected to make an investment of up to $100 million during the next five years to support the development of some 300 co-branded Rostik’s/KFC restaurants. Yum! will provide financial support, including the provision of loans and guarantees up to $30 million to support this development.

RRL chairman and CEO Rostislav Ordovsky-Tanayevsky Blanco says the deal will allow Yum! to bring its KFC brand name into a new market, while RRL benefits from the retailer’s proven success. “This is an ideal combination of the best from the East and West,” Blanco says. “By joining forces with such a global partner, Rostik’s is not only getting the financial support for growth, but also the access to Yum! Brands’ years of international experience and technology.”

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