Yum Brands Sells Pizza Hut for $2.7 Billion in Split Deal

Yum Brands entered into agreements Tuesday to sell Pizza Hut for a combined $2.7 billion, splitting the chain between two buyers. LongRange Capital, a private equity firm, will acquire Pizza Hut locations outside mainland China for about $1.5 billion. Yum China Holdings will purchase the chain's mainland China business for about $1.2 billion.

Yum expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments, and transaction-related fees, excluding a potential $75 million earn-out by 2030. The company also expects roughly $85 million in one-time costs to complete the separation.

The transaction follows a strategic review of Pizza Hut that began last year after the chain recorded its eighth consecutive quarter of same-store sales declines.

Hut has faced ongoing challenges including declining sales and increased competition. The company planned to close 250 underperforming locations during the first half of 2026. A franchisee filed suit in May over the Dragontail restaurant management system, alleging operational disruptions and customer service problems.

Yum said it is reviewing the claims and will respond through appropriate legal channels.

and Yum Brands LongRange

Capital described itself as a hands-on operator and said it plans to invest in Pizza Hut's growth while building on the franchise system and global footprint. Yum stated Pizza Hut would be well positioned for future growth under the new owners. Yum will refocus on its other brands after completing the sale.

“This is really not the beginning, but a continuation of changes already underway.”

Employees have likely lived under change and pressure as the chain struggled, Cerda added. The challenge for LongRange will be balancing required changes with a case that the investment aims to re-energize the brand.