Yum Brands agrees to divest Pizza Hut to LongRange Capital and Yum China for $2.7 billion, aiming to streamline operations and prioritize KFC and Taco Bell.
Yum Brands Inc (YUM) will sell Pizza Hut for approximately $2.7 billion, splitting the deal between private equity firm LongRange Capital and Yum China Holdings (YUMC). LongRange will acquire Pizza Hut operations outside Mainland China for $1.5 billion, while Yum China will purchase the China business for $1.2 billion. The transactions are expected to close in Q3 2026, pending regulatory approvals and customary conditions.
The sale follows a strategic review initiated in November 2025, with Yum Brands concluding that separate ownership would better position Pizza Hut for growth. The company aims to sharpen its focus on core brands KFC and Taco Bell, aligning with its capital allocation priorities. Yum Brands may also receive an additional earn-out payment as part of the LongRange agreement.
Yum Brands CEO Chris Turner stated the deal allows the company to become more focused while leveraging scale and technology to drive growth. Pizza Hut, described as an iconic brand, will transition to owners with restaurant industry expertise.