New Delhi, June 16: Yum! Brands announced on Tuesday that it has agreed to sell its Pizza Hut business for a total of $2.7 billion. This sale will divide the iconic pizza chain between private equity firm Longrange Capital and Yum China Holdings.
This decision follows a strategic review aimed at creating more value for shareholders and refocusing on its other global restaurant brands.
Under the agreement, Pizza Hut’s operations outside mainland China will be sold to Longrange Capital for approximately $1.5 billion, while Yum China Holdings will acquire Pizza Hut China for about $1.2 billion.
Yum! stated that this deal comes after a comprehensive review of various strategic options initiated in November 2025.
According to the company, its leadership and board concluded that separate ownership structures would provide better opportunities for Pizza Hut’s long-term growth and create more value for shareholders.
The new owners are expected to have extensive experience in the quick-service restaurant industry and will tailor strategies to meet the needs of their respective markets.
Chris Turner, CEO of Yum! Brands, emphasized that this deal will allow the company to operate in a more focused manner while leveraging its technology, talent, and global reach for growth in its other businesses.
He praised Pizza Hut as one of the world’s most iconic restaurant brands and acknowledged the contributions of employees, franchise partners, and team members to its global expansion.
Yum! anticipates that, after taxes, transaction-related fees, and other adjustments, it will receive approximately $2.3 billion in net proceeds, excluding potential additional performance-based payments.
The company could also receive an additional $75 million under the agreement with Longrange Capital by 2030 if certain performance targets are met.
Yum! mentioned that it may incur a one-time cost of about $85 million to complete the separation process by the end of 2026.
While Pizza Hut is being divested, Yum! will continue to provide services through its proprietary ‘Bite by Yum!’ technology platform for Pizza Hut operations outside China.
Additionally, the company will offer some corporate services during the transition period to ensure a smooth transfer of the business.
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