Yum! Brands to sell Pizza Hut for $2.7 billion
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Quick service restaurant operator Yum! Brands, Inc. announced to sell Pizza Hut for $2.7 billion in two separate deals.
Pizza Hut, excluding Mainland China, will be acquired by private equity firm LongRange Capital for $1.5 billion, while Pizza Hut Mainland China will be acquired by Yum China Holdings, Inc. for $1.2 billion. Additionally, Yum! would receive an earn-out of $75 million by 2030. The sale comes on the back of a strategic portfolio reshaping exercise.
“Following a comprehensive review of strategic options for Pizza Hut that commenced in November 2025, Yum!’s leadership team and Board of Directors determined the sale provides the strongest path to maximise shareholder value while providing Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR experience,” the statement read.
Other transaction details
Across the two transactions, Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earn-out. The company also expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation.
Yum!’s Board of Directors has also approved an incremental $4 billion authorisation for the repurchase of common stock. The company said it will no longer report on the Pizza Hut division, following the close of the transactions.
“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.”
Barclays and Goldman Sachs are serving as financial advisers to Yum!. Weil, Gotshal & Manges LLP and Mayer Brown LLP are serving as legal advisers to Yum!.