Yum! Brands to sell Pizza Hut for $2.7 billion in two transactions
Pizza Hut is being split into separate global and Mainland China operations for an aggregate price of $2.7 billion.
Quick service restaurant conglomerate Yum! Brands has entered into definitive agreements to sell its Pizza Hut pizzeria chain for $2.7 billion. That figure includes a $1.5 billion deal to sell all Pizza Hut operations outside Mainland China to private equity firm LongRange Capital for approximately $1.5 billion, as well as a $1.2 billion agreement to sell Pizza Hut Mainland China to Yum China, its former Chinese subsidiary which has operated as an independent company since 2016, for about $1.2 billion.
Across the two transactions, Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding a $75 million earn-out it can earn from the global sale in 2030 if certain financial targets are met. Yum! also expects to incur one-time expenses of approximately $85 million during the remainder of 2026.
Yum! will continue to provide Byte by Yum!, its proprietary technology platform, to Pizza Hut outside of China. In addition, the company will deliver certain corporate services to Pizza Hut outside of China under a transition services agreement.
The transactions have been unanimously approved by Yum!’s Board of Directors and the company expects both transactions to close in the third quarter of 2026, subject to customary closing conditions, including receipt of required regulatory approvals. Following the close of the transactions, Yum! will no longer report on the Pizza Hut division.
Barclays and Goldman Sachs are serving as financial advisers to Yum!. Weil, Gotshal & Manges LLP and Mayer Brown LLP are serving as legal advisers to Yum!.
Yum! Brands follows through on review
In November 2025, Yum! Brands announced it was undertaking a formal review of strategic options for its Pizza Hut brand, which could include a potential sale.
[READ MORE: Yum Brands reviewing options for Pizza Hut — including sale]
In a statement at the time, Yum Brands said the intent of the review was for Pizza Hut “to reach its full potential for the benefit of its franchisees, consumers, and employees and to maximize value for Yum shareholders.“
The review came as the pizza chain, which has nearly 20,000 locations worldwide, had been struggling at home and abroad, reporting declining same-store sales for the past few quarters. For Pizza Hut’s last reported first quarter 2026 results, same-store sales were flat with a 4% drop in its home market.
However, Pizza Hut has been performing well in China, with fourth quarter same-store sales remaining flat due to strategic value pricing while same-store transactions rose 5% for its 13th straight quarter of improving same-store transactions there.
Following are overviews of each transaction:
Global (excluding Mainland China)
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel and Greenberg Traurig, LLP acted as franchise counsel to LongRange. UBS Investment Bank is providing financing for the transaction.
“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” said Bob Berlin, Founder and Managing Partner of LongRange. “We look forward to partnering with Yum! to ensure a smooth transition for the business and working with Pizza Hut’s talented team and franchise partners to drive its next phase of growth through investments that deliver consistently great food and experiences for customers around the world.”
Mainland China
Yum China Holdings Inc. plans to grow Pizza Hut from 4,375 restaurants across more than 1,100 cities to more than 6,000 stores in Mainland China by 2028 and to double operating profit by 2029 from 2024.
By eliminating Pizza Hut license fees to Yum! Brands, the company expects to improve restaurant and operating margins and be immediately accretive to diluted earnings per share from 2026, with mid-single-digit earnings per share accretion in 2027 and 2028. The company will fund the deal with cash and debt.
"Moving from the exclusive licensee to the brand owner of Pizza Hut in Mainland China represents a transformative milestone for us, demonstrating our conviction and long-term commitment to the China market,” said Joey Wat, CEO of Yum China. We see tremendous opportunities ahead, and we are still only at the early stage of our planned growth trajectory for Pizza Hut China. Becoming the brand owner will give the company greater strategic flexibility to drive innovation across the menu, store formats, new modules, and operations.”
Yum! Brands Inc., and its subsidiaries franchise or operate more than 63,000 restaurants in 155 countries and territories under the brands KFC, Taco Bell, Pizza Hut and Habit Burger & Grill.
