Boosting KFC Japan: How PwC Helped the Quick-Service Restaurant Grow

Carlyle now possesses the entire stake in KFC Holdings Japan, Ltd. (“KFC Japan”), including the stake previously held by Mitsubishi Corporation, the largest shareholder in KFC Japan. Transactions were completed in September 2024 with KFC Japan’s self-acquisition of its own shares, following Carlyle’s public tender offer. As a result, KFC Japan was delisted and has become a wholly-owned subsidiary of Carlyle. 

KFC Japan operates the Japanese Kentucky Fried Chicken restaurants under a Master Franchise Agreement (“MFA”) with Yum! Brands Inc. (NYSE), one of the world's largest restaurant chain companies, with brands in the quick-service restaurant (QSR) industry such as KFC, Taco Bell, Pizza Hut, and Habit Burger Grill brands. Our client, KFC Asia Franchise Pte Ltd, the Global Master Franchisor, is responsible for the management and development of the KFC brand and business in the Asia Pacific region including Japan.  

Building on a strong relationship with Yum! Brands in the region, PwC was involved from the initial stages and led the entire deal process.  

The PwC team (from PwC Japan, Korea, and Singapore) was the exclusive financial advisor to the Global Master Franchisor, designing and structuring the entire deal process and supporting negotiations on the new MFA with the bidders. 

Working with the Client and Mitsubishi Corporation, PwC successfully managed the balance between the interests of both the Client and Mitsubishi Corporation as well as other sellers, mostly public shareholders. 

This deal offers a significant opportunity to reignite the growth of KFC’s iconic brand and heritage in Japan.  KFC Japan believes that Carlyle makes an excellent new MFA partner given their extensive experience in the QSR business. 

Enhanced stores, new menus and digital innovation are now all planned to strengthen the experience for customers, so they continue to enjoy the quality of product and good service they have come to know and expect. 

"We are very happy with the outcome of the transaction, and grateful for the quality of the integrated services and solutions provided by the PwC team throughout the process." Rebecca Koh, Senior Manager, Development, KFC Asia Franchise Pte Ltd.