Yum! Brands, Inc. has agreed to sell Pizza Hut, excluding in Mainland China, to private equity firm LongRange Capital for $2.7 billion, while Pizza Hut in Mainland China will be acquired by Yum China Holdings, Inc. in a separate transaction, deals subject to certain purchase price adjustments.
Under the terms of the agreement, Yum! will sell Pizza Hut (less Mainland China) to LongRange for approximately $1.5 billion. Additionally, Yum! has the opportunity to receive an earn-out of $75 million by 2030. Yum! will sell Pizza Hut China to Yum China for approximately $1.2 billion.
Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earn-out. Yum! additionally expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation.
The deal, which follows strategic review of the brand that took place in November 2025, will position Yum! Brands for long-term growth and shareholder value creation while giving Pizza Hut an ownership structure that will support its competitive strengths and long-term priorities in distinct markets.
“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. “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.”
The next chapter includes a continued partnership between Yum! Brands and Yum China. The two have agreed to certain financial incentives that will generate value for both companies’ shareholders related to KFC China’s future system sales growth rates, as well as Taco Bell in the same market.
The transactions have been unanimously approved by Yum!’s Board of Directors, and the expectation is that both transactions will close in the third quarter of the year, subject to closing conditions.
