KFC India adds 50 stores as same-store sales growth reaches 4.4%

KFC India added 50 net stores in Q2 FY27, taking its network to 844 outlets, while same-store sales growth reached 4.4% after a 4.2% decline a year earlier. KFC’s on-premise sales mix was 56%, and H1 FY27 revenue rose to Rs 1,326.6 crore from Rs 1,184.9 crore.

How many stores did KFC add in Q2 FY27?

KFC added 50 net stores in Q2 FY27, increasing its network from 794 at the end of Q1 FY27 to 844 at the end of Q2 FY27. The Q2 FY27 network was also 110 stores larger than the 734 outlets reported at the end of Q2 FY26.

The presentation highlighted Q2 FY27 KFC locations at Six Miles in Guwahati, Kuthiathode Eramalloor in Kerala, Makali in Bangalore, and on the Guwahati-Shillong route. These four named locations show that the reported openings covered multiple parts of India.

Revenue was Rs 642.4 crore in Q2 FY27, below Rs 684.2 crore in Q1 FY27 but above Rs 572.3 crore in Q2 FY26. The sequential decline came as the store count increased by 50, while the year-on-year comparison includes 110 more stores.

How did KFC’s sales mix change in Q2 FY27?

KFC’s on-premise sales represented 56% of Q2 FY27 sales, compared with 54% in Q2 FY26, while off-premise sales accounted for 44%, down from 46%. The mix therefore moved 2 percentage points toward on-premise sales year on year.

The Q2 FY27 split was slightly less weighted toward on-premise sales than Q1 FY27, when on-premise sales were 57% and off-premise sales were 43%. In H1 FY27, on-premise sales were also 57%, versus 54% in H1 FY26, while off-premise sales fell to 43% from 46%.

The mix change occurred while Q2 FY27 revenue was Rs 642.4 crore and the store base stood at 844. The presentation does not identify the cause of the change, but it records a higher on-premise share than in Q2 FY26 alongside the larger network.

Did same-store sales return to growth for KFC?

KFC reported same-store sales growth of 4.4% in Q2 FY27, compared with a 4.2% decline in Q2 FY26. The result followed growth of 3.3% in Q1 FY27.

For H1 FY27, same-store sales growth was 3.9%, reversing the 2.4% decline reported for H1 FY26. This comparison shows positive reported same-store sales growth in the first half after a negative result in the corresponding prior-year period.

Average daily sales were 88 on the presentation’s ADS’000 measure in Q2 FY27, compared with 89 in Q2 FY26 and 98 in Q1 FY27. Thus, Q2 FY27 same-store sales growth of 4.4% was reported alongside ADS’000 that was one point below the prior-year quarter and 10 points below the preceding quarter.

What happened to KFC’s gross margin and brand contribution?

KFC’s Q2 FY27 gross margin was 68.2%, compared with 68.1% in Q2 FY26 and 69.4% in Q1 FY27. Gross margin in rupee terms was Rs 438.3 crore, up from Rs 389.8 crore a year earlier but below Rs 474.5 crore in the preceding quarter.

For H1 FY27, gross margin increased to 68.8% from 67.6% in H1 FY26, while its value rose to Rs 912.8 crore from Rs 801 crore. The 1.2-percentage-point increase accompanied H1 revenue growth of Rs 141.7 crore to Rs 1,326.6 crore.

Brand contribution was Rs 89 crore in Q2 FY27, equal to 13.9% of sales. That was above Rs 80.5 crore, or 14.1%, in Q2 FY26, but below Rs 115.4 crore, or 16.9%, in Q1 FY27.

In H1 FY27, brand contribution rose to Rs 204.4 crore from Rs 175.3 crore in H1 FY26. Its percentage of sales increased to 15.4% from 14.8% over the same periods.

Which value offers did KFC feature?

KFC featured a Chicken Krisper Meal at Rs 99, compared with a displayed price of Rs 237. The presentation also displayed Onam specials, bucket-based double deals and the Double Chicken Dynamite product, but it did not quantify sales from any individual offer.

The KFC Sunday Double Deal offered a free six-piece Hot & Crispy or six-piece Strips product with the purchase of one bucket, with stated savings of 38%. KFC’s Big Feast Days promotion also offered a free bucket on selected purchases, including eight pieces plus two dips, and was stated to be valid on 14 August.

For its Onam campaign, KFC advertised discounts of up to 44%, with the offer stated to run until 31 August. Double Chicken Dynamite was described in the presentation as chicken-noodle-chicken, adding a product launch to promotions centred on the Rs 99 meal and bucket offers.

Conclusion

KFC’s Q2 FY27 performance combined network expansion with positive reported same-store sales growth. The chain reached 844 stores after adding 50 net outlets, same-store sales growth reached 4.4% against a 4.2% decline a year earlier, and on-premise sales rose to 56% of the mix from 54%.

The presentation does not disclose a future KFC store-opening target, a forward sales target or a scheduled reporting event. The next relevant disclosed comparison will therefore be whether subsequent reporting maintains positive same-store sales growth after the 3.9% H1 FY27 result and whether on-premise sales remain near the 57% H1 FY27 share.