Yum Brands announced Tuesday that it will sell Pizza Hut in two separate transactions worth a combined $2.7 billion. The largest part of the deal is the sale of Pizza Hut’s operations outside mainland China to private equity firm LongRange Capital for about $1.5 billion.
Pizza Hut’s mainland China business was sold separately to Yum China for about $1.2 billion. Investors reacted positively to the announcement, sending Yum! Brands shares were higher in trade. After the news broke, Yum Brands’ shares were close to $158.22, up nearly 2% in early trading.
With Pizza Hut promotion, Yum Brands It also announced a new $4 billion plan to buy back its own shares from the market. Yum said it would begin considering acquiring Pizza Hut in November 2025. The company’s leadership and board of directors believe selling Pizza Hut is the best way to add value to shareholders. Yum also said that if Pizza Hut had its own independent ownership, it would be better able to focus on its own markets and long-term growth plans.
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Pizza Hut’s Struggles
The sale comes after years of problems for Pizza Hut that hurt Yum Brands’ overall performance. In the United States, Pizza Hut is trying to convert its original dine-in restaurants and salad bars into more delivery and takeout services, CNBC reported. But amid this change, it found it difficult to adapt to new customer habits. At the same time, competitors Domino’s Pizza Over the years it grew and slowly took more customers away from Pizza Hut.
Takeaway platforms such as door panel It also increased competition and took away some sales from Pizza Hut. Yum! expects to receive approximately $2.3 billion in net proceeds from the two transactions, after taxes, fees and other adjustments.
transaction details
The projected $2.3 billion figure does not include an additional $75 million in earnings LongRange Capital may pay through 2030. Yum Brands also expects to incur one-time charges related to the transaction of approximately $85 million during the remainder of 2026. Company executives plan to provide more details on the financial impact of the sale during Yum Brands’ second-quarter earnings call on July 30. Yum Brands expects both transactions to close in the third quarter of 2026, subject to regulatory approvals.
Pizza Hut’s History
The deal ends Pizza Hut’s long-standing relationship with sister restaurant chains Taco Bell and KFC, part of Yum! As of the end of 2025, Pizza Hut operated nearly 20,000 stores in 108 countries and regions, according to Yum! regulatory filings cited by CNBC. In 2025, Pizza Hut’s system annual sales will be approximately $12.8 billion.
The United States remains Pizza Hut’s largest market, accounting for approximately 40% of total system sales. China is Pizza Hut’s second-largest market, accounting for approximately 20% of the system’s total sales. The $2.7 billion sale marks one of the biggest changes in Pizza Hut’s ownership history and opens a new chapter for the pizza chain under different owners.
