LOUISVILLE, Kentucky — Yum Brands has agreed to sell Pizza Hut in two transactions valued at approximately $2.7 billion, marking a major restructuring that will leave the company focused primarily on its KFC and Taco Bell businesses, the company announced this week.
Under the agreements announced on Tuesday, private equity firm LongRange Capital will acquire Pizza Hut operations outside mainland China for about $1.5 billion, while Yum China Holdings will purchase Pizza Hut’s mainland China business for roughly $1.2 billion. Yum Brands said the transactions are expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions.
The sale concludes a strategic review launched by Yum in late 2025 after Pizza Hut experienced several quarters of declining sales and increasing competitive pressure in key markets. The pizza chain has faced challenges from rival delivery-focused brands, changing consumer preferences and cautious discretionary spending.
Yum Chief Executive Chris Turner said the company’s board determined that separate ownership structures would better position Pizza Hut for future growth. “Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry,” Turner said in a company statement.
The transaction represents one of the largest restaurant-industry deals of the year and will significantly reshape Yum’s portfolio. Following completion of the sale, the company will retain ownership of KFC, Taco Bell and Habit Burger & Grill. Yum said it expects to receive approximately $2.3 billion in net proceeds after taxes, adjustments and transaction-related fees. The company’s board also approved an additional share repurchase authorization worth about $4 billion.
Pizza Hut remains one of the world’s largest pizza chains, with nearly 20,000 locations globally, but its performance has varied sharply by region. While sales have struggled in several international markets, the business in China has remained comparatively strong, benefiting from localized menus and continued expansion. Yum China has said it plans to continue growing the brand in the country.
The divestment also reflects a broader trend among multinational companies seeking more localized ownership structures in major markets. Analysts and investors have closely watched the negotiations since Yum disclosed it was exploring strategic alternatives for Pizza Hut last year.
As of Friday, both transactions were awaiting regulatory clearance. Yum said it would provide additional details regarding the financial impact of the sale during its second-quarter earnings call scheduled for late July. Until the deals close, Pizza Hut will continue operating under existing ownership arrangements.
