Speculation that Thai Beverage Plc (ThaiBev) may divest its KFC Thailand franchise business has become one of the most discussed topics in the country’s restaurant sector. Reports suggest the company has appointed Bank of America to explore strategic options for the business.
What makes this development striking is that KFC is not a struggling asset. On the contrary, it has been the strongest growth driver in ThaiBev’s food portfolio, delivering steady gains in sales, store expansion, and profitability.
KFC’s rapid rise under ThaiBev
ThaiBev acquired 240 KFC outlets in 2017 for about USD 339 million. Since then, it has aggressively expanded the brand to more than 500 restaurants, making it the largest KFC franchisee in Thailand.
In March 2026, the company achieved nationwide coverage by opening KFC’s first outlet in Mae Hong Son. This milestone capped more than four decades of the brand’s presence in Thailand. Today, KFC operates 1226 outlets nationwide, managed by three franchise operators.
Food division struggles despite KFC’s strength
While ThaiBev’s core alcoholic beverage business remains its main profit engine, the food division has faced persistent challenges.
In fiscal year 2025, the segment generated USD 648 million in revenue but posted a net loss of USD 3.8 million, reversing from a profit the year before.
During the first half of fiscal 2026, food sales edged up to USD 336 million, while net profit declined 44.4% year-on-year to USD 2 million, mainly due to higher depreciation expenses from restaurant expansion and increased income tax expenses.
KFC remains the star performer
Among ThaiBev’s 30 restaurant brands—including Oishi, Shabushi, Ban Suriyasai, and Lerdlao—KFC stands out as the clear growth engine. Its operating arm, The QSR of Asia Co Ltd, reported USD 333 million in revenue in 2025, up 5.3%. Net profit rose 9.7% to USD 13.1 million, marking a third straight year of growth
KFC alone contributes nearly half of ThaiBev’s total food revenue, underscoring its importance to the group’s portfolio.
Market dominance and future questions
Thailand’s fried chicken quick-service restaurant market is valued at about USD 892 million. Despite competition from Bonchon, Wingstop, Joe Wings, and Texas Chicken, KFC continues to dominate.
ThaiBev has not confirmed or denied reports of a possible sale. Industry observers note that the timing coincides with the later stage of franchise agreements, which typically last around 10 years. Strategic reviews are therefore common practice.
The central question is not only whether ThaiBev will sell KFC, but how it intends to maximize the value of its most profitable food asset as it shapes its long-term strategy. Until official clarification is given, the market will watch closely.