Yum! Brands has agreed to sell Pizza Hut in a split transaction worth $2.7 billion in aggregate, offloading its international operations to private equity firm LongRange Capital and its mainland China business to Yum China Holdings.
Under the terms announced by the company, LongRange will pay approximately $1.5 billion for Pizza Hut outside of mainland China, with Yum! also eligible for a $75 million earn-out by 2030.
Yum China, which already operates KFC and Taco Bell in the country, will pay approximately $1.2 billion for the China operations. After taxes, closing adjustments, and transaction fees, Yum! expects net proceeds of roughly $2.3 billion across both deals. The company also flagged one-time separation costs of approximately $85 million for the remainder of 2026.
Yum! said the decision followed a strategic review that began in November 2025, with its board concluding unanimously that a sale offered the best path to shareholder value.
“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,” Chris Turner, Chief Executive Officer, Yum! Brands said in a statement.
Yum! will retain its Byte by Yum! technology platform and continue supplying it to the international Pizza Hut business under a transition services agreement. The company said fees from that arrangement are expected to offset corporate overhead historically allocated to Pizza Hut during 2026.
The two transactions are expected to close in the third quarter of 2026, pending regulatory approvals. Yum! will discuss updated 2026 financial guidance during its second-quarter earnings call on July 30. Following the close, Pizza Hut will cease to be a reported division of Yum! Brands, leaving the company focused on KFC and Taco Bell globally.
