NEW YORK — Pepsico Inc. announced today that it has reached an agreement in principle to purchase Kentucky Fried Chicken Corp. from RJR Nabisco Inc. for about $850 million in cash.
Kentucky Fried Chicken is the second largest restaurant chain in the world--after McDonald's Corp.--with its 6,500 franchised and company-owned restaurants.
Pepsico already operates Pizza Hut and Taco Bell restaurants, in addition to its Pepsi-Cola soft drink and Frito-Lay snack foods businesses.
The combination would create the world's largest restaurant group, with more than 14,000 restaurants.
Pepsico is the No. 2 soft drink maker behind Coca-Cola Co.