Yum Brands to sell Pizza Hut for $2.7bn

Fast food giant Yum Brands has entered into definitive agreements to sell its Pizza Hut business in separate transactions totalling $2.7bn (£2.01bn).

Private equity firm LongRange Capital will acquire the pizza chain’s operations outside of mainland China for approximately $1.5bn (£1.12bn), with an optional $75m (£55.9m) earn-out by 2030.

Licensee Yum China Holdings will purchase the mainland China division for $1.2bn (£890m). The parent company expects to receive $2.3bn (£1.71bn) in net proceeds after taxes and closing adjustments.

The divestment follows a strategic review launched in November 2025. Yum Brands will continue providing its proprietary technology platform and transition services to the business.

Both transactions received unanimous board approval. The deals are expected to close in the third quarter of 2026, subject to regulatory approvals, after which the firm will stop reporting Pizza Hut financial results.

Chris Turner, chief executive of Yum Brands, said: “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. 

“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.”