CHENNAI: Yum! Brands, Inc on Tuesday announced that it has entered into definitive agreements to sell Pizza Hut for $2.7 billion in the aggregate, subject to certain purchase price adjustments.
Pizza Hut, excluding Mainland China, will be acquired by LongRange Capital, a private equity firm and Pizza Hut in Mainland China will be acquired by Yum China Holdings, Inc.
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.
“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 the terms of the agreement with LongRange, Yum! will sell Pizza Hut Ex-China to LongRange for approximately $1.5 billion. Additionally, Yum! has the opportunity to receive an earn-out of $75 million by 2030.
Under the terms of the agreement with Yum China, Yum! will sell Pizza Hut China to Yum China for approximately $1.2 billion.
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. Yum! additionally expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation.
The transactions have been unanimously approved by Yum!’s Board of Directors. Yum! expects both transactions to close in the third quarter of 2026, subject to customary closing conditions, including receipt of required regulatory approvals. Following the close of the transactions, Yum! will no longer report on the Pizza Hut division.
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!.