Yum! Brands has entered into two definitive agreements to divest its Pizza Hut operations for a total of $2.7 billion.
Private‑equity firm LongRange Capital will purchase the Pizza Hut business outside Mainland China for $1.5 billion, with an additional contingent earn‑out of up to $75 million payable through 2030.
Yum China Holdings will acquire Pizza Hut’s operations in Mainland China for $1.2 billion.
Collectively, the transactions are projected to generate approximately $2.3 billion in net proceeds after taxes, closing adjustments and related fees, excluding the earn‑out.
The company anticipates incurring $85 million in one‑time costs over the remainder of the year to finalize the separation.
Upon completion, Yum! will discontinue reporting Pizza Hut as a distinct reporting segment.
Following the transaction, Yum! Brands will continue to provide its proprietary technology platform, Byte by Yum!, to Pizza Hut operations outside China and will offer selected corporate services under a transition‑services agreement.
Both transactions are anticipated to close during the third quarter of 2026.
This decision follows a strategic review of Pizza Hut initiated in November 2025.
Yum! Brands’ management and board concluded that divesting Pizza Hut represents the strongest pathway to maximize shareholder value, positioning the brand with owners whose structures, market focus and quick‑service restaurant expertise align with its long‑term objectives.
Earlier this week, Yum! Brands disclosed that its chief operating officer and chief people and culture officer, Tracy Skeans, will retire.