Pizza Hut set for new ownership in USD 2.7 billion Yum Brands deal

Yum! said the transactions follow a comprehensive review of strategic options for the pizza chain that began in November 2025. Representational Pic/ X

Yum! Brands on Tuesday announced that it has agreed to sell its Pizza Hut business for a total of USD 2.7 billion, splitting the iconic pizza chain between private equity firm LongRange Capital and Yum China Holdings.

The move follows a strategic review aimed at unlocking shareholder value and sharpening Yum!'s focus on its remaining global restaurant brands.

Under the agreements, Pizza Hut operations outside Mainland China will be acquired by private equity firm LongRange Capital for approximately USD 1.5 billion, while Pizza Hut China will be acquired by Yum China Holdings for about USD 1.2 billion.

Yum! said the transactions follow a comprehensive review of strategic options for the pizza chain that began in November 2025.

The company said its leadership team and Board of Directors concluded that separate ownership structures would provide the best opportunity for Pizza Hut's long-term growth while maximising value for shareholders.

The new owners bring significant experience in the quick-service restaurant industry and are expected to tailor strategies to the unique needs of their respective markets.

Chris Turner, Chief Executive Officer of Yum! Brands said the transactions would allow the company to become more focused while continuing to leverage its scale, technology and talent to drive growth across its remaining businesses.

He described Pizza Hut as one of the world's most iconic restaurant brands and credited its employees, franchisees and team members for building its global presence.

Yum! expects to receive approximately USD 2.3 billion in net proceeds after taxes, transaction-related fees and closing adjustments, excluding a potential earn-out payment.

The company could receive an additional USD 75 million by 2030 under the agreement with LongRange Capital if certain performance targets are achieved.

The company also expects to incur one-time expenses of around USD 85 million during the remainder of 2026 to complete the separation process.

Despite the divestment, Yum! will continue to provide its proprietary Byte by Yum! technology platform to Pizza Hut operations outside China.

It will also offer certain corporate services under a transition agreement to support an orderly handover of the business.

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