Yum! Brands agrees $2.7b sale of Pizza Hut, with China business sold separately

USA – Yum! Brands has entered into definitive agreements to sell Pizza Hut for a combined $2.7 billion, with LongRange Capital acquiring the business outside mainland China and Yum China Holdings purchasing the mainland China operations.

Under the transaction, Pizza Hut outside mainland China will be sold to private equity firm LongRange Capital, while Pizza Hut China will be acquired by Yum China Holdings. The move follows a strategic review launched in November 2025, with Yum! concluding that separate ownership structures would better support the brand’s long-term growth across different markets.

As part of the agreements, Yum! Brands and Yum China will maintain their existing partnership and have put in place financial incentives tied to the future growth of KFC China. The companies also plan to continue collaborating on the long-term expansion of Taco Bell in mainland China.

LongRange will acquire Pizza Hut Ex-China for approximately $1.5 billion, with Yum! eligible to receive an additional earn-out payment of up to $75 million by 2030. Separately, Yum China will acquire Pizza Hut China for approximately $1.2 billion.

Yum! expects to receive around $2.3 billion in net proceeds from the two transactions after taxes, closing adjustments, and transaction-related fees, excluding the earn-out payment. The company also expects to incur one-time separation costs of about $85 million during the remainder of 2026.

“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders,” said Chris Turner, Chief Executive Officer, Yum! Brands. 

He added, “Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter.”

Following the sale, Yum! will continue providing its Byte by Yum! technology platform to Pizza Hut Ex-China and will supply certain corporate services under a transition agreement to support the separation.

The company said additional details on the financial impact of the transactions and any changes to its 2026 outlook will be discussed during its second-quarter earnings call on July 30.

Both deals have been unanimously approved by Yum!’s board of directors and are expected to close in the third quarter of 2026, subject to customary conditions and regulatory approvals. Once completed, Yum! will no longer report Pizza Hut as a separate division.

Yum! Brands operates more than 63,000 restaurants across 155 countries and territories through KFC, Taco Bell, Pizza Hut and Habit Burger & Grill.