Restaurant franchise operator Yum! Brands has reached two definitive agreements to sell its Pizza Hut business for $2.7bn.
Private equity company LongRange Capital will acquire the Pizza Hut business excluding Mainland China for $1.5bn, with an additional potential earn-out of $75m payable by 2030.
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Yum China Holdings will purchase Pizza Hut in Mainland China for $1.2bn.
Across both disposals, Yum! expects net proceeds of around $2.3bn after taxes, closing adjustments and transaction-related fees, excluding the earn-out.
The company also anticipates incurring $85m in one-off costs through the rest of this year to complete the separation.
After closing, Yum! will stop reporting Pizza Hut as a separate division.
However, Yum! Brands will continue to provide “Byte by Yum!”, its proprietary technology platform, to Pizza Hut Ex-China and will supply certain corporate services under a transition services agreement.
Both transactions are expected to close in the third quarter of 2026.
The move follows a strategic review of Pizza Hut launched in November 2025.
Yum! said its management and board decided that selling Pizza Hut is the “strongest path” to maximise shareholder value. The company further added that it will also place the brand with owners whose structures, market focus and QSR [quick-service restaurant] expertise fit its markets, strengths and long-term goals.
Recently, Yum! Brands announced its chief operating officer and chief people and culture officer, Tracy Skeans, would retire.
