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

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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