Yum Brands sells Pizza Hut for $2.7 billion

Yum Brands announced on Tuesday that it has agreed to sell its Pizza Hut chain in two separate transactions totaling $2.7 billion, concluding a strategic review launched last November. The parent company will sell Pizza Hut's operations outside mainland China to private equity firm LongRange Capital for approximately $1.5 billion, while Yum China Holdings will acquire the mainland China business for about $1.2 billion.

The company expects to receive roughly $2.3 billion in net cash proceeds after taxes and fees, with an additional earnout of up to $75 million possible from LongRange by 2030. Yum Brands anticipates incurring one-time transaction expenses of approximately $85 million during the remainder of 2026. Both deals are expected to close in the third quarter, pending regulatory approvals.

Yum Brands CEO Chris Turner stated the transactions will allow the company to focus its resources and investment on technology initiatives, workforce development, and creating value for stakeholders. He expressed confidence that under LongRange and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry. Yum...