Devyani, Sapphire Foods rise up to 5% as KFC and other popular food brands may arrive at railway stations soon

Devyani, Sapphire Foods shares rise up to 5% as KFC and other popular food brands may arrive at railway stations soon

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26 Aug, 2025 12:21

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The shares of Devyani International and Sapphire Foods jumped in trade on November 18. This comes as Indian Railways may soon allow 'Premium Brand Catering Outlets' to operate at railway stations.

The two companies operate KFC and Pizza Hut outlets in India. Sapphire Foods India shares surged more than 5 percent to trade at Rs 264 apiece, while Devyani International shares rose around 4 percent to trade at Rs 147.99 apiece.

Indian Railways may soon allow these outlets at railway stations:

The Ministry of Railways, in a circular dated November 13, said that South Central Railway in a letter had stated that there is need to permit Premium Single Brands, such as McDonald's, KFC, Pizza Hut, Baskin Robbins, Haldirams, Bikanerwala and others, at stations to bring them at par with similar facilities available to passengers at airports.

Railway Board examined the request and concluded that Zonal Railways can operate 'Premium Brand Catering Outlets' (single-brand, company-owned/operated/franchise), if there is a demand and justification by suitably incorporating the same in the station plan or blueprint.

Thereby, 'Premium Brand Catering Outlet’ was added as a new and fourth type of catering stall which can be operated at a railway station. "Allotment of 'Premium Brand Catering Outlet' will be done as per governing e-Auction policy in vogue. A dedicated segment may accordingly be created under the e-Auction module," the circular read.

These outlets will have a tenure of 5 years, like any other stalls at the railway stations. "All other instructions, including fixation of Minimum License Fee, shall be governed as per extant Catering Policy," the circular further read.

Devyani International and Sapphire Foods India:

Both Devyani International and Sapphire Foods India operate KFC and Pizza Hut outlets in India as franchisee partners of American conglomerate Yum! Brands. The mention of these two names in the circular boosted investor sentiment for the two stocks, pushing them higher up.

Sapphire Foods operated 529 outlets of KFC and 338 outlets of Pizza Hut at the end of the July-September quarter of FY26. Devyani International's KFC and Pizza Hut store count in India meanwhile stood at 734 and 621 respectively, at the end of the quarter.

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