Yum China Holdings, the operator of fast-food chains KFC and Pizza in the Asian country, has bought a stake in Fujian Sunner Development Co., one of the largest poultry suppliers in the market.
New York- and Hong Kong-listed Yum China has acquired a 5% shareholding in Sunner, which the foodservice business described as “China’s largest white-feathered chicken producer”.
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Sunner, listed on China’s Shenzhen Stock Exchange, is a business covering chicken breeding, farming and meat processing. The company, based in the south-eastern province of Fujian, is Yum China’s biggest poultry supplier.
“Yum China and Sunner are longstanding business partners. The management team of Sunner has demonstrated exceptional execution capabilities over the years,” Joey Wat, Yum China’s CEO, said. “With this strategic investment, we look forward to enhancing Yum China’s supply chain security and deepening our collaborations with Sunner, including in the areas of product development and innovations.”
US-based Yum Brands spun off its operations in China in 2016. Yum China Holdings has more than 10,500 restaurants in China. In 2020, its revenues fell 6% to US$8.26bn. Net income was up 10% at $784m. During the last three months of the year, revenues increased 11% to $2.26bn, or by 5% when excluding the impact of exchange rates.
