Yum! Brands Divests Pizza Hut for $2.7B: LongRange (Ex-China) + Yum China Split
Yum! Brands to sell Pizza Hut for $2.7B (Jun 16, 2026): ~$1.5B ex-China to LongRange Capital, ~$1.2B Mainland China to Yum China. ~$2.3B net. Pizza Hut 2025 system sales $3.47B (−3.9% YoY). Close Q3 2026.
TL;DR — Jun 16, 2026: Yum! Brands divests Pizza Hut for $2.7B total — ex-China (
$1.5B) to LongRange Capital (PE); Mainland China ($1.2B) to Yum China. Net ~$2.3B (+ up to $75M earn-out by 2030). Rationale: PH is the laggard (2025 system sales $3.47B, −3.9% YoY). Close Q3 2026; portfolio focuses on KFC + Taco Bell.
A portfolio-pruning divestiture by geography.
Structure
| Pizza Hut Ex-China | Pizza Hut Mainland China | |
|---|---|---|
| Buyer | LongRange Capital (private equity) | Yum China Holdings |
| Price | ~$1.5 billion | ~$1.2 billion |
| Combined deal value | $2.7 billion total | |
| Net to Yum! | ~$2.3 billion after tax/fees (+ up to $75M earn-out by 2030) | |
| Expected close | Q3 2026 | Q3 2026 |
- Source: Yum! release, CNBC.
Rationale
- PH 2025 system sales $3.47B vs $3.61B (2024), −~3.9% (Fortune); ~250 US closures H1 2026.
- Capital/attention reallocated to faster-growing KFC + Taco Bell.
Quote
Chris Turner, CEO, Yum! Brands: "Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry."
FAQ
Deal value/structure?
$2.7B total; ex-China ~$1.5B (LongRange), Mainland China ~$1.2B (Yum China).
Net proceeds?
~$2.3B after tax/fees, + up to $75M earn-out by 2030.
Why sell?
PH is the slowest brand (−3.9% system sales 2025); focus on KFC/Taco Bell.
Close?
Q3 2026, pending approvals.
Sources: Yum! Brands press release, CNBC, Fortune.
Image: 幽隐敏兔, CC BY-SA 4.0, via Wikimedia Commons.
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