Yum! Brands has agreed to sell Pizza Hut in deals valued at $2.7 billion combined, marking the completion of a strategic review launched in November 2025. The company announced that Pizza Hut’s operations outside Mainland China will be acquired by private equity firm LongRange Capital, while its Mainland China business will be acquired by Yum China.
The restaurant company said the move is intended to streamline its business and allow greater focus on its core growth priorities. Following the sale, Yum! Brands will continue to operate their remaining portfolios while Pizza Hut moves under separate ownership structures tailored to different markets. The company stated that the decision followed an evaluation of strategic alternatives and was intended to maximize shareholder value.
Transaction Details
Under the agreement with LongRange Capital, Yum! Brands will sell Pizza Hut Ex China for approximately $1.5 billion. The company could also receive an additional $75 million earn-out payment by 2030, subject to certain conditions. Separately, Yum China will acquire Pizza Hut China for approximately $1.2 billion.
Yum! Brands expects to receive around $2.3 billion in net proceeds from the two transactions after taxes, fees, and other adjustments, excluding the potential earn-out. The company also expects to incur approximately $85 million in one-time separation-related expenses during the remainder of 2026.
As part of the arrangement, Yum! will continue providing its Byte by Yum! technology platform to Pizza Hut Ex China. It will also offer certain corporate support services under a transition agreement to facilitate the separation process. The company said fees from these services are expected to offset corporate expenses previously allocated to Pizza Hut during 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 (CEO), Yum! Brands.
He further 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.”
