Yum Brands has announced the sale of the Pizza Hut chain for a total value of $2,7 billion, completing the strategic review initiated in November 2025 and marking a new phase in its history. The transaction will allow the U.S. group to focus on its KFC, Taco Bell, and Habit Burger & Grill brands, aiming to accelerate growth and create greater shareholder value.
The deal involves two separate transactions. Pizza Hut's operations in mainland China will be acquired by Yum China Holdings for approximately $1,2 billion, while all other global operations will be transferred to the private equity fund LongRange Capital for approximately $1,5 billion.
According to Yum Brands, the sale represents the best way to enhance the Pizza Hut brand, allowing it to develop under ownership structures better suited to the specificities of different markets and the competitive challenges of the quick-service restaurant sector. The group also emphasized that the new owners have significant experience in the quick-service restaurant sector.
The decision comes after a difficult few years for the pizza chain, struggling with weak demand, fierce competition in the fast food market, and increasingly budget-conscious consumers. Rising raw material costs and changing eating habits, with a growing focus on products considered healthier, also played a role.
Pizza Hut accounted for about 12% of Yum Brands’ total revenue in 2025, but its performance had lagged behind that of Taco Bell and KFC, which have driven the group’s growth in recent years.
Chris Turner, CEO of Yum Brands, explained that the transaction will make the company more focused and allow it to better leverage its scale, technology, and management expertise. Turner also emphasized the historic role Pizza Hut played in the group's development and expressed confidence in the brand's future prospects under the new ownership.
Financially, Yum expects to collect approximately $2,3 billion net after taxes, transaction costs, and closing adjustments. The agreement with LongRange also includes a potential additional earn-out of $75 million by 2030.
A portion of the proceeds from the sale will be used to remunerate shareholders. Concurrently with the announcement, the board of directors approved a new $4 billion share buyback program and confirmed its intention to continue investing in business development.
The transaction also strengthens the relationship between Yum Brands and Yum China. The two companies have agreed to financial incentives tied to KFC's future sales growth in China and will collaborate to support Taco Bell's expansion into the Chinese market.
Yum will also continue to provide Pizza Hut Ex-China with its proprietary Byte by Yum! technology platform and certain business services during the transition to ensure an orderly separation of operations.
The two transactions, unanimously approved by the board of directors, are expected to be completed in the third quarter of 2026, subject to regulatory approvals. Following the closing, Yum Brands will no longer report results for the Pizza Hut division separately, marking the end of a chapter that began in 1977 with PepsiCo's acquisition of the chain and continued with the creation of Yum Brands in 2002.
