Yum Brands splits Pizza Hut in $2.7bn global sale

Yum Brands has agreed to sell Pizza Hut in two separate transactions worth a combined US$2.7 billion, marking a major restructuring of one of the world’s best-known pizza chains.

The company said Pizza Hut outside mainland China will be acquired by LongRange Capital, a US private equity firm, while the mainland China business will be bought by Yum China Holdings. Yum Brands said the deals followed a strategic review launched in November 2025 to assess the best ownership structure for Pizza Hut.

Under the agreement, LongRange Capital will buy Pizza Hut’s business outside mainland China for about US$1.5 billion, with a possible additional earn-out payment of up to US$75 million by 2030. Yum China will separately acquire ownership of the Pizza Hut brand in mainland China for US$1.2 billion in cash.

Yum China said that, after the transaction closes, Pizza Hut China will no longer have to pay licence fees to Yum Brands. The company said the acquisition would give it full ownership of the brand in mainland China, where it already operates Pizza Hut as part of its restaurant portfolio.

The sale underlines the different challenges facing Pizza Hut across markets. In the United States and other international markets, the brand has been pressured by tougher competition, delivery-focused rivals and changing consumer behaviour. Associated Press reported that Pizza Hut sales fell 2% last year, while Yum Brands’ overall sales rose 5%. In the US, Pizza Hut sales dropped 8.2% in 2025.

Yum Brands chief executive Chris Turner said the company believed Pizza Hut would be better placed for future growth under new ownership, while Yum Brands would sharpen its focus on KFC and Taco Bell. LongRange Capital founder Bob Berlin said Pizza Hut remained a globally recognised brand with potential for renewed growth.

The China deal carries a different strategic logic. Yum China, which became an independent publicly traded company in 2016, already operates KFC and Pizza Hut in mainland China and describes Pizza Hut as a leading brand in the country’s casual dining sector.

The transactions are expected to close in the third quarter of 2026, subject to regulatory approvals and other customary conditions. Yum Brands said its board had approved the agreements unanimously.

The company also announced a new US$4 billion share repurchase authorisation, reinforcing its plan to return capital to shareholders as it reshapes its portfolio around its remaining core brands.

Yum! Brands official press release , Yum China official release , Yum China PRNewswire release