Yum! Brands’ Turkish partner on brink of bankruptcy amid KFC, Pizza Hut dispute

Is Gida, the Turkish company operating 537 KFC and Pizza Hut restaurants in Türkiye with over 6,000 employees, filed for concordatum—a legal debt restructuring process that allows financially distressed companies to avoid bankruptcy.

According to Turkish media reports, the court filing submitted on Jan. 28 reveals that each KFC restaurant required an investment of approximately $300,000, and the company cited outstanding loans totaling ₺7.7 billion ($215.77 million). The court filing stated that the company’s rapid expansion, driven by these investments, eventually led to financial difficulties.

Yum! Brands failed to honor commitments

The court documents indicate that Is Gida reached out to Yum! Brands, the U.S.-based owner of KFC and Pizza Hut, late in 2024 to address its financial troubles. Over two months, the parties engaged in a series of negotiations. Allegedly, an agreement was reached for Yum! Brands to acquire several restaurants, but the deal never materialized.

Following the company’s petition, the court granted a temporary three-month reprieve for debt restructuring.

On Jan. 8, Is Gida made headlines due to a contractual dispute with Yum! Brands over the termination of their agreement. Arguing that the termination violated the contract, the Turkish company filed a lawsuit a week later.