Yum! Brands announced definitive agreements to sell Pizza Hut for a total of $2.7 billion, completing the strategic review process launched in November 2025 and positioning the company to focus on long-term growth and shareholder value creation.
Under the transactions, private equity firm LongRange Capital will acquire Pizza Hut operations outside Mainland China for approximately $1.5 billion, with Yum! eligible to receive an additional $75 million earnout by 2030. Meanwhile, Yum China Holdings, Inc. will acquire Pizza Hut China for approximately $1.2 billion.
Following the deals, Yum! expects to receive approximately $2.3 billion in net proceeds after taxes, closing adjustments, and transaction-related fees. The company also expects to incur approximately $85 million of one-time separation expenses during the remainder of 2026.
The transactions will make Yum! a more focused company centered on its remaining brands, including KFC, Taco Bell, and Habit Burger & Grill. Yum! will continue providing its proprietary Byte by Yum! technology platform to Pizza Hut Ex-China and will supply certain corporate services through a transition services agreement.
Yum! and Yum China also agreed to financial incentives designed to create value for shareholders if KFC China accelerates future system sales growth. The companies will continue collaborating on long-term expansion plans for Taco Bell in Mainland China.
Concurrent with the sale announcements, Yum!’s board approved an additional $4 billion share repurchase authorization. The company expects both transactions to close during the third quarter of 2026, subject to regulatory approvals and customary closing conditions. Upon completion, Yum! will no longer report Pizza Hut as a separate operating division.
KEY QUOTES:
“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. 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.”
Chris Turner, Chief Executive Officer of Yum! Brands
