Yum Brands has announced a major business move involving the sale of Pizza Hut in a deal worth $2.7 billion, as per a report by Fox Business. The company said it has signed definitive agreements to sell the Pizza Hut business in two separate parts as part of a broader effort to reorganise its brand portfolio.
Under the deal, Pizza Hut’s operations outside mainland China will be taken over by private equity firm LongRange Capital for approximately $1.5 billion. At the same time, Pizza Hut China will be acquired by Yum China Holdings for around $1.2 billion.
Along with the sale, Yum Brands said its board has approved a new $4 billion share buyback plan. The company expects to receive around $2.3 billion after taxes and other costs once both deals are completed. Following the completion of the transactions, Yum will shift its focus towards growing KFC, Taco Bell and Habit Burger & Grill.
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As per Fortune, the statement reads, “Following a comprehensive review of strategic options for Pizza Hut that commenced in November 2025, Yum’s leadership team and Board of Directors determined the sale provides the strongest path to maximise shareholder value while providing Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR experience.”
“These transactions enable Yum to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders. Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world and we are proud of the important role it has played in Yum’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter,” Chris Turner, Chief Executive Officer, Yum Brands, said.
The sale marks the end of a long chapter in Pizza Hut’s history, which began in 1958 when brothers Frank and Dan Carney founded the company. It was later acquired by PepsiCo in 1977 and subsequently became part of Yum Brands.
Before completing the transition, Yum Brands had decided to close nearly 250 underperforming restaurants in the United States.
