Yum Brands sells Pizza Hut for $2.7 billion in major restaurant shakeup

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Yum Brands is selling Pizza Hut for $2.7 billion in two separate transactions. This marks the end of Yum Brands’ ownership of the pizza chain and concludes a strategic evaluation that started in late 2025.

Pizza Hut is splitting its international business. LongRange Capital will buy the Pizza Hut locations outside of mainland China for about $1.5 billion. Meanwhile, Yum China will purchase Pizza Hut’s business within mainland China for approximately $1.2 billion.

These deals are anticipated to be finalized around the third quarter of 2026, assuming they receive the necessary regulatory approvals and all standard closing requirements are met.

Yum Brands announced the sale after carefully considering Pizza Hut’s future, starting with a review process in November 2025. After the sale is finalized, Pizza Hut will operate independently and won’t be included in Yum Brands’ financial reports.

According to Yum! Brands CEO Chris Turner, these changes will allow the company to concentrate on its core strengths – using its size, technology, and employees – to achieve its key goals and provide lasting benefits to those it serves.

With new ownership from LongRange and Yum China, Pizza Hut is set for future success, benefiting from their extensive experience in the restaurant business. Pizza Hut is a globally recognized and beloved brand, and we’re proud of its significant contribution to Yum!’s legacy.

This news follows recent reports that one franchise owner had already begun renovating some restaurants to resemble the original design, featuring familiar elements like checkered tablecloths, glass chandeliers, and red cups.

Yum expects $2.3 billion in net proceeds from Pizza Hut sale

Yum Brands will receive around $1.5 billion for its Pizza Hut restaurants outside of Mainland China, and could potentially earn another $75 million by 2030 based on performance.

The separate agreement with Yum China values Pizza Hut China at approximately $1.2 billion.

Yum Brands anticipates receiving approximately $2.3 billion in cash after accounting for taxes, fees, and other costs related to these transactions. They also estimate around $85 million in one-time expenses will occur as they finalize the separation of the business later in 2026.

Even after the sale, Yum Brands will still provide its technology platform, Byte by Yum, to Pizza Hut locations outside of China. They’ve also agreed to offer support services during the transition to help with the separation.

Yum Brands, the company behind KFC, Taco Bell, Pizza Hut, and Habit Burger Grill, has over 63,000 locations in 155 countries around the world.

Pizza Hut recently introduced a crustless pizza for those who don’t enjoy the crust, and to celebrate, they gave away free pizza crust for an entire year as part of the launch.

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2026-06-16 17:20