Yum! Brands announced a $2.7 billion sale of Pizza Hut in two distinct transactions. Private equity firm LongRange Capital will acquire Pizza Hut's operations outside of mainland China for approximately $1.5 billion, with the potential for an additional $75 million earn-out by 2030. Separately, Yum China Holdings Inc. will purchase Pizza Hut's mainland China business for about $1.2 billion. The total proceeds for Yum! Brands, after taxes and fees, are expected to be around $2.3 billion. The company also anticipates incurring one-time expenses of approximately $85 million to facilitate the separation.
The sale comes after a comprehensive review of strategic options for Pizza Hut that began in November 2025. Yum! Brands' leadership determined this sale would best maximize shareholder value and provide Pizza Hut with ownership structures tailored to its specific markets and competitive landscape. The transactions have been unanimously approved by Yum!'s Board of Directors and are expected to close in the third quarter of 2026, subject to regulatory approvals. Upon closing, Yum! will no longer report on the Pizza Hut division, and the net proceeds will be used for business investments and returning capital to shareholders, including an incremental $4 billion stock repurchase authorization.
Pizza Hut, which was founded in 1958 and became the world's top pizza chain by sales in 1971, has struggled in recent decades. Its sales fell 2% last year, even as Yum! Brands' global sales rose 5%. In 2020, Pizza Hut closed 300 U.S. restaurants, and in February 2026, it announced plans to close another 250 U.S. locations. Analysts like Neil Saunders of GlobalData noted that Pizza Hut has been the "weak link" in Yum!'s portfolio, requiring significant investment and patience that Yum! was not prepared to provide. The chain has faced increasing pressure from delivery-focused rivals like Domino's, which surpassed Pizza Hut in market share, and from general delivery services like DoorDash and Uber Eats.
