Yum! Brands has entered into definitive agreements to sell Pizza Hut in a transaction valued at $2.7 billion, subject to certain purchase price adjustments. Under the deal, Pizza Hut’s operations outside Mainland China will be acquired by LongRange Capital, while the Mainland China business will be acquired by Yum China Holdings.
The move follows a strategic review of Pizza Hut that began in November 2025. Following the review, Yum! Brands’ leadership and board concluded that separate ownership structures would better support the brand’s growth across different markets while maximising shareholder value.
Commenting on the development, Chris Turner, Chief Executive Officer, Yum! Brands, said, “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.”
As part of the agreements, Yum! will sell Pizza Hut Ex-China to LongRange for approximately $1.5 billion, with an additional earn-out opportunity of $75 million by 2030. Pizza Hut China will be sold to Yum China for around $1.2 billion.
The company expects net proceeds of approximately $2.3 billion from the two transactions after taxes, closing adjustments and transaction-related fees, excluding the earn-out component. Yum! also expects to incur one-time separation-related expenses of about $85 million during the remainder of 2026.
Yum! said it will continue to provide its proprietary technology platform, Byte by Yum!, to Pizza Hut Ex-China. It will also offer certain corporate services under a transition services agreement to facilitate an orderly separation.
The transactions have received unanimous approval from Yum! Brands’ Board of Directors and are expected to close in the third quarter of 2026, subject to customary closing conditions and regulatory approvals. Following completion of the transactions, Yum! will no longer report Pizza Hut as a separate division.
