New Delhi — Yum! Brands said Tuesday that it has agreed to sell its Pizza Hut business for $2.7 billion as part of a strategic overhaul aimed at sharpening its 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 about $1.5 billion. Pizza Hut China will be acquired by Yum China Holdings for about $1.2 billion.
The company said the transactions follow a review of strategic options for Pizza Hut that began in November 2025. Yum! said its leadership team and board concluded that separate ownership structures would give the pizza chain the best opportunity for long-term growth while maximizing shareholder value.
Yum! said the new owners bring significant experience in the quick-service restaurant industry and are expected to tailor their strategies to the 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 use 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 about $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 $75 million by 2030 under the agreement with LongRange Capital if certain performance targets are met.
Yum! also expects to incur one-time expenses of about $85 million during the rest of 2026 to complete the separation.
Despite the sale, Yum! will continue to provide its proprietary Byte by Yum! technology platform to Pizza Hut operations outside China. It will also provide certain corporate services under a transition agreement to support an orderly handover of the business. (Source: IANS)
