Manish Dawar, the incoming president and chief government, stated the corporate will add zero web new Pizza Hut shops in calendar 2025 and 2026, shifting consideration as a substitute to fixing the basics.
A key precedence is shutting loss-making shops, alongside upgrading know-how, an space the place Devyani has fallen behind its friends, he stated, including the clean-up train may take a few years.
Pizza Hut can even see sharper advertising and marketing, a stronger innovation pipeline, and extra focused online-offline methods as the corporate works to revive demand, he stated.
Dawar acknowledged that Devyani’s earlier working construction, break up throughout Yum! Manufacturers, Sapphire Meals, and Devyani slowed decision-making and know-how investments, leaving them much less nimble than rivals.
The continuing merger with Sapphire Meals is geared toward fixing that, with Devyani set to take management of know-how and supply-chain operations, which administration believes will assist speed up Pizza Hut’s reset.
Dawar stated the corporate has begun experimenting with promotions, worth offers, and differentiated on-line and offline methods, which helped ship constructive same-store gross sales development in January.
“We’ve began taking initiatives, and we’re seeing early outcomes,” he stated. “However it’s too early to conclude. We’ll come again with a sustainable technique as issues evolve.”
Management adjustments
Devyani Worldwide on Wednesday introduced that Dawar will probably be appointed as the brand new president and CEO, efficient 1 April 2026, transitioning from his function as chief monetary officer to steer the corporate’s development and the merger with Sapphire Meals.
He succeeds Virag Joshi, who will stay with the corporate as a non-executive director. Virag Joshi, who spent over 20 years at Devyani, will stay intently related to the corporate in a non-executive function, making certain continuity because the group transitions into its subsequent section of development.
As a part of the CEO transition, Devyani introduced new management adjustments. Anupam Kumar, who’s presently government vice-president-finance, will turn into the brand new CFO. He brings over 20 years of expertise, having labored at Vedanta and Walker Chandiok & Co. earlier than becoming a member of Devyani’s dad or mum RJ Corp.
The corporate additionally appointed Neeraj Tiwari as chief know-how officer, highlighting its concentrate on a digital-first method within the QSR trade. Tiwari has beforehand led digital know-how at Americana Group, a serious restaurant operator within the Gulf area, and has additionally labored with Zee Leisure and Jubilant FoodWorks.
Enterprise restructuring
The pizza chain’s reset comes proper after the corporate introduced a merger with rival Sapphire Meals on 1 January, making a single operator for Yum! Manufacturers in India at a time when the fast-food sector is underneath stress from weak demand and shrinking margins.
The deal, anticipated to shut in 15-18 months, goals to ship ₹210-225 crore in annual synergies from the second 12 months, whereas giving Devyani scale and tighter management over know-how and provide chains—important as Pizza Hut struggles in India and globally.
Its income from operations throughout the December quarter of 2025-26 stood at ₹1,440.9 crore, up 11.3% year-on-year.
As of 31 December 2025, Devyani Worldwide operated 2,279 eating places worldwide, up from 2,039 on the finish of March 2025.
In India, it had 1,877 shops, up from 1,664 simply 9 months in the past. Amongst Yum! Manufacturers, KFC was the most important chain, rising from 696 to 788 shops. Pizza Hut added solely 9 new places, growing its complete to 639.
Franchise manufacturers comparable to Costa Espresso and Tealive noticed a slight decline, going from 220 to 211 places. Nevertheless, Devyani’s personal manufacturers, together with Vaango, Biryani By Kiloand Goila Butter Hen, greater than doubled their footprint, increasing from 96 to 218 shops.
Internationally, Devyani had 402 eating places in Thailand, Nigeria, and Nepal, up from 375 in March, with most additions in Thailand.
Sandeep Abhange, fairness analysis analyst, shopper and staples at LKP Securities, stated demand within the December quarter remained uneven, with stress on discretionary spending delaying a broader consumption restoration. “Festive-led promotions helped enhance tendencies in direction of November and December, however administration is guiding for a gradual restoration by This autumn relatively than a pointy rebound,” he stated.
He famous KFC continues to be Devyani’s strongest performer, delivering constructive same-store gross sales development (SSSG) and wholesome store-level margins. “Pizza Hut India stays in unfavourable SSSG territory, which has led to ongoing retailer rationalization and portfolio pruning,” he stated.
He added supply now accounts for almost 55-60% of gross sales, supported by value-led choices and deeper digital penetration, at the same time as discounting depth on aggregator platforms has been rationalized to guard margins. “Visitors tendencies are starting to stabilize, with mature shops displaying higher throughput.”
On enlargement, Abhange stated Devyani added round 250 gross shops over the previous 12 months, even because it selectively closed underperforming Pizza Hut shops. “The corporate is taking a calibrated method to development, specializing in tier II and tier III cities the place retailer economics are higher, whereas prioritizing return on invested capital over headline enlargement.”
Margins additionally confirmed early indicators of restoration within the quarter, helped by easing meals value inflation in key inputs comparable to poultry, cheese, and edible oils, though worker prices stay elevated as a consequence of wage pressures and staffing at new shops. “Retailer-level Ebitda improved sequentially, and administration expects a gradual margin restoration trajectory,” Abhange stated.
Shares of Devyani Worldwide surged over 6% to shut at ₹123.30 on BSE on Wednesday, reflecting a robust constructive market response to the event.