Carlyle Group and Yum China Holdings are competing to purchase Jardine Matheson’s restaurant division, which operates KFC and Pizza Hut in several Asian markets, Reuters reported, citing undisclosed sources.
The report added that the sale of Jardine Restaurant Group could raise HK$3.1bn ($400m) and has also drawn interest from Taiwanese food group Uni-President and other private equity investors.
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Based in Hong Kong, Jardine Restaurant Group operates nearly 1,000 KFC and Pizza Hut outlets and employs around 25,000 staff across Hong Kong, Macau, Myanmar, Taiwan and Vietnam.
It also controls PHD, a pizza takeaway brand in Hong Kong.
The sources commented that the business generates an estimated HK$273m to HK$313m in earnings before interest, taxes, depreciation and amortisation (EBITDA).
The sources added that the non-binding bids for the Jardine Restaurant Group are due this week.
In a 2025 annual report, Jardines said deflation has kept Hong Kong spending weak, hitting its restaurant unit.
Carlyle has been building a regional fast-food portfolio. In December, it agreed to acquire 100% of KFC Korea and was part of a consortium that bought a controlling stake in McDonald’s China in 2017.
It sold that stake back to McDonald’s in 2023.
Yum China, spun off from ‘Yum Brands’ in 2016, operates KFC and Pizza Hut in mainland China and lists Primavera Capital and Jack Ma’s Ant Group among its main backers.
Sources added that any deal is expected to value Jardine Restaurant Group at a high single-digit or low-teen multiple of core earnings.
Jardines is “open to selling one market or all, depending on the offer terms”, the sources said.
The proposed disposal comes as Jardines shifts capital towards core activities. In January, it completed a HK$32.8bn take-private deal of luxury hotel group Mandarin Oriental.
