This article first appeared in The Edge Malaysia Weekly on October 26, 2026 - November 1, 2026

JOHOR Corp Bhd (JCorp) and private-equity firm CVC Capital Partners are looking to sell their KFC and Pizza Hut fast-food businesses, sources say. The move comes amid heightened competition and mounting pressure from rising operating costs in Malaysia’s food and beverage sector.

“They have been looking for buyers. They’re targeting foreign ones, in particular from the Middle East,” a source familiar with the matter tells The Edge, adding that foreign investment bank Citi is running the process. Citi declined comment.

According to two sources, there have been expressions of interest among potential buyers, but whether it eventually culminates in a deal remains to be seen.

“I am told pricing is an issue. One [suitor] walked away as the asking price was deemed too high,” one of them says, without elaborating. The other says the asking price is in the range of RM4 billion.

JCorp and CVC, together with the Employees Provident Fund (EPF), are shareholders of the fast-food businesses through Massive Equity Sdn Bhd.

Massive Equity wholly owns QSR Brands (M) Holdings Bhd, the operator of more than 800 KFC restaurants across Malaysia, Singapore, Brunei and Cambodia, and over 500 Pizza Hut restaurants in Malaysia and Singapore, according to data on QSR Brands’ website.

JCorp holds a 55.63% stake in Massive Equity, while Melati Asia Holdings Ltd holds 44.19%, with the rest held by several individuals. Melati Asia is jointly owned by the EPF (51%) and CVC (49%).

When contacted, JCorp senior general manager of group corporate communications Hasnina Hafiz says JCorp is focused on building competitive and resilient businesses across its portfolio.

“We take a disciplined approach to evaluating investment opportunities, with the aim of creating sustainable, long-term value for our stakeholders. QSR Brands remains an important part of our investment portfolio. Its improved performance reflects progress in enhancing operational efficiency and competitiveness. Any material developments will be communicated through the appropriate channels at the appropriate time,” she tells The Edge. CVC declined comment.

KFC and Pizza Hut, along with other well-established Western — or Western-perceived — brands such as McDonald’s and Starbucks, were strongly impacted by a consumer boycott that began after the Israel-Palestine conflict erupted in October 2023. This added to their ongoing challenges with rising cost pressures.

Be that as it may, in June, when announcing its performance for the financial year ended Dec 31, 2025 (FY2025), JCorp noted that QSR Brands recorded a 19% increase in revenue to RM3.85 billion. It said this was achieved despite changing consumer spending patterns and rising cost pressures.

It also revealed that QSR Brands had returned to profitability, following “measures to improve operational efficiency, optimise its portfolio, enhance customer experience and exercise greater cost discipline”. However, it did not disclose the profit figure.

It remains to be seen whether QSR Brands will stay profitable this year, given how the US-Iran conflict since late February has inevitably pushed up commodity prices, such as oil, and raised overall costs for both consumers and businesses.

Financial data from OneCredit shows that QSR Brands’ revenue, which came in at RM4.81 billion in FY2022, grew slightly to RM4.87 billion in FY2023 before declining 33.7% year on year to RM3.23 billion in FY2024.

It made a profit before tax of RM49.58 million in FY2022, before reporting a loss before tax (LBT) of RM66.2 million in FY2023 and an even deeper LBT of RM332.67 million in FY2024.

It registered losses after tax of RM22.13 million in FY2022, RM95.15 million in FY2023 and RM431.57 million in FY2024.

JCorp as a group saw its net profit more than double to RM703 million in FY2025 from RM317 million the year before, spurred by stronger performances in its core sectors, particularly wellness and healthcare, and agribusiness.

Back in 2012, JCorp, together with the EPF and CVC, took QSR Brands and its subsidiary KFC Holdings (M) Bhd private in a RM5.2 billion deal that was completed in February 2013.

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