Key facts
- Yum Brands is selling its Pizza Hut chain for a total of $2.7 billion.
- LongRange Capital will acquire Pizza Hut operations outside of Mainland China for $1.5 billion.
- Yum China will acquire Pizza Hut operations within Mainland China for $1.2 billion.
- The sale follows a strategic review amid struggles with competition, outdated stores, and cautious consumer spending.
- Yum Brands expects the sale to close in the third quarter of 2026, pending regulatory approvals.
Yum Brands announced it will sell its Pizza Hut chain for a combined $2.7 billion. The deal is structured as two transactions: LongRange Capital will acquire Pizza Hut operations outside of Mainland China for $1.5 billion, while Yum China will purchase the Mainland China operations for $1.2 billion. This divestiture follows a strategic review initiated amid struggles with stiff competition, outdated stores, and cautious consumer spending, exacerbated by rising inflation and the adoption of weight-loss drugs. Pizza Hut accounted for approximately 12% of Yum's total revenue in 2025. CEO Chris Turner stated the sales will enable Yum Brands to become a more focused company. The transactions are expected to close in the third quarter of 2026, pending regulatory approvals.
The sale of the China business mirrors a broader trend of U.S. firms handing control to local operators to navigate tougher competition and shifting demand. Starbucks and General Mills have recently sold stakes in their China operations to local entities. Yum China, a Shanghai-based spin-off of Yum Brands, aims to expand Pizza Hut to more than 6,000 stores by 2028.