Yum! Brands To Sell Pizza Hut in USD 2.7-Bn Deal; Board Approves USD 4-Bn Share Buyback

New Delhi: Global quick-service restaurant operator Yum! Brands on Tuesday announced the sale of Pizza Hut for an enterprise value of USD 2.7 billion in two separate deals, as part of a strategic portfolio reshaping exercise.

The Louisville, Kentucky-based firm has announced that it has entered into “definitive agreements to sell Pizza Hut for USD 2.7 billion in the aggregate, subject to certain purchase price adjustments”.

The company said Pizza Hut operations outside Mainland China will be acquired by private equity firm LongRange Capital for about USD 1.5 billion, while Pizza Hut China will be acquired by Yum China Holdings for around USD 1.2 billion.

Besides, its board has also approved an incremental USD 4 billion share repurchase authorisation, said a global statement from Yum! Brands.

“Across the two transactions, Yum! expects to receive approximately USD 2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earn-out,” it said.

Additionally, it also expects to incur one-time expenses of approximately USD 85 million during the remainder of 2026 to effectuate the separation.

These transactions follow a strategic review launched in November 2025 and are expected to be completed in the third quarter of 2026, subject to regulatory approvals and customary closing conditions.

“Yum! expects both transactions to close in the third quarter of 2026, subject to customary closing conditions, including receipt of required regulatory approvals. Following the close of the transactions, Yum! will no longer report on the Pizza Hut division,” it said These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent and deliver sustained value for our stakeholders, said Chris Turner, Chief Executive Officer, 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,” he said.

As part of the arrangements, Yum! will continue providing its proprietary technology platform, Byte by Yum!, to Pizza Hut Ex-China and will also offer certain corporate support services during a transition period.

“The net after-tax proceeds will be used in accordance with the Company’s capital allocation strategy, including investing in the business and returning excess capital to shareholders,” it said.

Yum!Brands, which owns QSR (quick service restaurant) brands – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill – operates more than 63,000 restaurants in 155 countries, which are operated either by the company or its franchise operators.

In India, Yum! Brand operates with three brands – KFC, Taco Bell, and Pizza Hut. Its local subsidiary, Yum! Restaurants India has over 2,000 stores operated by several franchise partners and the brand itself.

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