Business
Yum Brands Sells Pizza Hut in $2.7 Billion Deal
Yum Brands has agreed to sell Pizza Hut in transactions worth a combined $2.7 billion, with LongRange Capital acquiring the business outside mainland China and Yum China taking control of its China operations. The sale follows years of challenges for Pizza Hut and comes after Yum launched a strategic review of the brand in late 2025. The deal will also end Pizza Hut's long-standing connection with sister brands KFC and Taco Bell under the Yum portfolio.
One of the most recognised pizza brands in the world took a massive step back with Yum Brands announcing the sale of Pizza Hut in deals worth around $2.7 billion.
Pizza Hut's overseas businesses will be sold to LongRange Capital for $1.5 billion, with Yum China taking control of the brand on mainland China territory for about $1.2 billion as part of the agreement.
Yum Brands sells Pizza Hut as planned
The deal comes after Yum Brands said in November that it was exploring more strategic options for Pizza Hut.
Its leadership team and board concluded the sale was the best way to enhance long-term value for shareholders and allow for Pizza Hut to have an ownership structure made to its markets, people, culture and priorities for growth as of Tuesday.
Yum expects to net about $2.3 billion after taxes, fees and closing adjustments. The number does not include a possible earn-out payment of up to $75 million from LongRange Capital by 2030.
The company estimates that it will incur one-time charges of approximately $85 million during the remainder of 2026 associated with the transactions.
Pizza Hut has faced years of difficulties
Pizza Hut's sale follows struggles over many years that have held back Yum Brands' performance as a whole. The chain has moved away from its dine-in restaurant model and salad bars in the US to concentrate more on delivery and carryout stores.
However, Pizza Hut has continued to face stronger competition from rivals with Domino's Pizza in particular steadily gaining market share through the years. The expansion of third-party delivery services including DoorDash has also been a drag on the business and hurt sales.
Source: CNBC
Follow Inspirepreneur Magazine for daily global business news.