Yum Brands has entered into definitive agreements to sell Pizza Hut for an aggregate $2.7 billion, subject to certain purchase price adjustments.

Under the agreements, Pizza Hut, excluding Mainland China, will be acquired by private equity firm LongRange Capital for approximately $1.5 billion. Pizza Hut in Mainland China will be acquired by Yum China Holdings for approximately $1.2 billion.

The sale follows a strategic review of Pizza Hut, which Yum began in November 2025. The company said its leadership team and board determined that the transactions provide the strongest path to maximise shareholder value, while giving Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities.

Chris Turner, chief executive officer of Yum, said: “These transactions enable Yum to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the BAR 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.”

Yum said it expects to receive approximately $2.3 billion in net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding a potential $75 million earn-out from LongRange by 2030. The company also expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to complete the separation.

Following completion, Yum will continue to provide Byte by Yum, its proprietary technology platform, to Pizza Hut outside China. It will also provide certain corporate services under a transition services agreement to support the separation.

Yum! Brands and Yum China said they remain committed to their partnership, with the companies agreeing to certain financial incentives that are expected to generate value for both sets of shareholders if KFC China’s future system sales growth rates accelerate. The companies also plan to work together on long-term growth plans for Taco Bell in Mainland China.

The transactions have been unanimously approved by Yum’s board of directors and are expected to close in the third quarter of 2026, subject to customary closing conditions, including regulatory approvals. Once completed, Yum will no longer report Pizza Hut as a division.

Separately, Yum’s board has approved an additional $4 billion authorisation for the repurchase of common stock.

The company said the net after-tax proceeds from the Pizza Hut sale will be used in line with its capital allocation strategy, including investing in the business and returning excess capital to shareholders.