KUALA LUMPUR (April 2): QSR Brands (M) Holdings Bhd, the operator of KFC restaurants across Malaysia, Singapore, Brunei, and Cambodia, said there are "no sales process currently being pursued or planned" by the group, and that it has been seeing encouraging signs of recovery in the first quarter of 2025 (1Q2025).

"Having overcome the challenges caused by Covid-19 lockdown, commodity price inflation, rising costs, they (the team) are well placed to manage the most recent Middle East sentiment," said QSR Brands, which also operates Pizza Hut outlets in Malaysia and Singapore, in a statement.

"They now have a playbook for shifting tides that create turbulence. And it’s all about execution of strategies to ensure a robust recovery. And encouraging signs have emerged — the company has achieved a 25% year-on-year revenue growth for 1Q2025," it said, without elaborating on the financials.

"This performance underpins the execution of transformation strategies and reaffirms its commitment to sustainable growth, with no sales process currently being pursued or planned," it added.

The statement came after The Edge Malaysia reported, citing sources, that Johor Corp Bhd (JCorp) was looking to exit QSR Brands after its KFC outlets experienced a number of lean years, owing mainly to the ongoing war in the Middle East. QSR Brands is owned by Massive Equity, in which JCorp holds 66.63%, and Melati Asia Holdings Ltd holds 44.01%. Melati Asia is jointly owned by Employees Provident Fund (51%) and private-equity firm CVC Capital Partners Ltd (49%).

JCorp was contacted but declined to comment on the story, which was published for the week of March 24-30.

In the Wednesday statement, JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim said QSR Brands has demonstrated remarkable resilience and agility, despite the challenging market environment.

"They have not only weathered the storm but thrived by remaking their business model and improving market sentiment through strategic marketing campaigns, menu innovation to target diversified customers, and strengthening partnerships and collaboration to expand their customer base.

“This success is further solidified by their strategic decision to enter a long-term strategic partnership with Hy-Fresh, allowing QSR Brands to streamline operations and focus on its core strengths," said Syed Mohamed, referring to QSR Brands' partnership with poultry supplier Hy-Fresh Holdings Sdn Bhd to strengthen its upstream poultry business that was announced in February.

"The results are evident in their growing sales, a clear indication of their ability to adapt, innovate and deliver,” Syed Mohamed added.

QSR Brands also said the group had generated RM250 million in value for FY2024 through their transformation initiatives, but did not explain what that value referred to.

Meanwhile, its chairman Tan Sri Jamaluddin Ibrahim said QSR Brands' ability to deliver consistent value, even in challenging market conditions, is a testament to its strong leadership and disciplined execution.

"The transformation initiatives undertaken have not only strengthened its operational efficiency but also enhanced its value proposition to customers, and fostered staff morale and productivity. As a result, we have seen a strong growth trajectory in revenue.

"The board will continue to support the management in its journey of sustainable growth and innovation, which aligns with QSR Brands' commitment to creating value for our stakeholders," Jamaluddin added.

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