Yum! Brands to sell Pizza Hut business for $2.7 billion in major restructuring move

Yum! Brands has announced an agreement to sell its global Pizza Hut business for a combined $2.7 billion, marking one of the largest restructuring moves in the company's history.

Under the transaction, Pizza Hut operations outside Mainland China will be acquired by private equity firm LongRange Capital for approximately $1.5 billion, while Yum China will acquire Pizza Hut's Mainland China business for around $1.2 billion.

The company said the decision followed a comprehensive strategic review launched in November 2025 and was aimed at maximising shareholder value while positioning Pizza Hut for future growth under owners with significant quick-service restaurant industry expertise.

"This transaction enables Yum! to become a more focused company while continuing to leverage scale, technology and talent to drive growth," Chief Executive Officer Chris Turner said.

Under the terms of the deal, Yum! will receive approximately $2.3 billion in net proceeds after taxes, closing adjustments and transaction-related fees. The company may also receive an additional earn-out payment of $75 million from the sale of Pizza Hut Ex-China by 2030.

Yum! said it expects to incur one-time separation expenses of approximately $85 million during the remainder of 2026.

The company will continue providing its proprietary Byte by Yum! technology platform to Pizza Hut Ex-China and will also offer certain corporate services under a transition agreement to ensure an orderly separation process.

Both transactions have been unanimously approved by Yum!'s Board of Directors and are expected to close during the third quarter of 2026, subject to regulatory approvals and customary closing conditions.

Following completion of the deals, Yum! will no longer report Pizza Hut as a separate operating division.

In a move aimed at enhancing shareholder returns, the board has also approved an additional $4 billion share repurchase authorisation. The company said proceeds from the sale would be used in line with its capital allocation strategy, including investments in core operations and returning excess capital to shareholders.

Yum! and Yum China said they would continue their strategic partnership, including cooperation on future growth opportunities for KFC China and the expansion of Taco Bell in Mainland China.

Yum! Brands currently franchises or operates more than 63,000 restaurants across 155 countries and territories under its brands Pizza Hut, KFC, Taco Bell and Habit Burger & Grill.