Yum Brands Inc. has announced the sale of Pizza Hut for a total of $2.7 billion across two separate deals. Pizza Hut’s operations outside mainland China will be acquired by private equity firm LongRange Capital for $1.5 billion, while the chain’s restaurants in the Chinese market will be purchased by Yum China Holdings Inc. for $1.2 billion.
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The deal represents a strategic restructuring for Yum Brands, as the company seeks to streamline its portfolio and focus on higher-growth opportunities within the global foodservice industry.
Investors responded positively to the news, with Yum Brands shares rising as much as 2.2% in pre-market trading. The sale comes at a time when Pizza Hut has been facing headwinds across several markets, as competition in the restaurant industry intensifies and consumer habits continue to shift.
Yum Brands retains Taco Bell and KFC
Pizza Hut was acquired by PepsiCo (PEP.O) in 1977 and was spun off in 1997 alongside KFC and Taco Bell to form the company that was later rebranded as Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to be completed in the third quarter of 2026, subject to the receipt of required regulatory approvals.
