Yum! Brands to sell Pizza Hut for $2.7B

Under the agreements, backstage equity steadfast LongRange Capital volition get Pizza Hut operations extracurricular Mainland China for astir $1.5 billion, portion Yum China Holdings (NYSE: YUMC) volition acquisition Pizza Hut China for astir $1.2 billion.

The transactions are taxable to customary closing conditions and regulatory approvals and are expected to adjacent successful the 3rd 4th of 2026.

The merchantability follows a strategical reappraisal of Pizza Hut that began successful November 2025. Yum! said its enactment squad and committee concluded that abstracted ownership structures would supply the champion way for the pizza chain's aboriginal maturation portion maximizing worth for shareholders.

"These transactions alteration Yum! to beryllium a much focused institution that continues to leverage scale, exertion and endowment to accelerate our raising the B.A.R. priorities and present sustained worth for our stakeholders," Yum! CEO Chris Turner said successful a statement.

Turner added that Pizza Hut would beryllium positioned for aboriginal maturation nether owners with edifice manufacture expertise and described the marque arsenic 1 of the astir iconic edifice chains successful the world.

As portion of the transaction with LongRange, Yum! whitethorn person an further earn-out outgo of up to $75 cardinal by 2030. Excluding that imaginable payment, the institution expects to person astir $2.3 cardinal successful nett proceeds aft taxes, closing adjustments and transaction-related fees.

Yum! said it expects to incur astir $85 cardinal successful one-time expenses during the remainder of 2026 related to separating the business.

The institution volition proceed providing its proprietary Byte by Yum! exertion level to Pizza Hut Ex-China and volition besides connection definite firm services nether a modulation statement to enactment the separation process.

Yum! and Yum China said they volition support their concern pursuing the transaction. The companies agreed to fiscal incentives tied to aboriginal maturation successful KFC China's strategy income and volition proceed collaborating connected semipermanent enlargement plans for Taco Bell successful Mainland China.

Alongside the merchantability announcement, Yum!'s committee authorized an further $4 cardinal stock repurchase program. The institution said the nett proceeds from the transactions volition beryllium utilized successful enactment with its superior allocation strategy, including investments successful the concern and returning excess superior to shareholders.

Yum! plans to supply further details regarding the fiscal interaction of the merchantability and immoderate updates to its 2026 outlook during its second-quarter net league telephone connected July 30.

Shares of Yum! traded up 2.5% connected the news.