SHANGHAI - The parent company of both KFC and Pizza Hut, Yum! Brands Inc, announced Wednesday it has signed a deal with Sinopec Corp to open chain restaurants in China's most spreading Sinopec gas stations.

Zhu Zongyi, president of Yum! Brands China Division, said Sinopec gas stations would help his company expand business into counties and well-off townships.

The Louisville, Kentucky-based multinational has nearly 3,500 KFC franchises and about 560 Pizza Hut restaurants in China. Last year, the company's China division reported a revenue of 33.6 billion yuan ($5.28 billion).

Earlier in November, it took over a popular Chinese hot-pot brand Little Sheep.

Yum! Brands has already deployed seven restaurants within the Sinopec network in Shanghai and Guangdong. The company also expected to build up to 50 similar ones in selected Sinopec gas stations in the coming five years.

Chai Zhiming, deputy general manager of Sinopec Sales Co, said, by teaming up with Yum! Brands, Sinopec hoped to upgrade the infrastructure and service levels in its gas stations and highway service areas.

Besides introducing Yum! Brands to open fast-food shops, Sinopec has also diversified services at its 30,000 gas stations nationwide by adding groceries and lottery outlets, he said.