Yum! Brands Divests Pizza Hut in $2.7 Billion Deal, Concluding 30-Year Ownership
Yum! Brands (NYSE: YUM) revealed on Tuesday, June 16, that it has finalized agreements to divest the Pizza Hut brand for a cumulative total of $2.7 billion. This move concludes nearly three decades of ownership of the renowned pizza chain. The sale is organized as two distinct transactions:
- Private equity firm LongRange Capital — established by Arby’s turnaround architect Bob Berlin — will acquire Pizza Hut operations outside mainland China for approximately $1.5 billion.
- Yum China Holdings, Inc. will purchase the China business for $1.2 billion.
This deal marks the end of a strategic review that commenced in November 2025. Pizza Hut has been grappling with declining sales — same-store sales dropped 5% in 2025 and another 4% in Q1 2026 — losing ground to competitors like Domino’s. As of early 2026, there were approximately 6,300 Pizza Hut locations in the U.S., with over 250 already marked for closure. Meanwhile, Yum! Brands will hold onto its better-performing KFC and Taco Bell chains and has approved an additional $4 billion share repurchase authorization in conjunction with the announcement.
Both transactions are anticipated to be finalized during the third quarter of 2026, pending standard regulatory approvals. Yum expects to net approximately $2.3 billion after taxes and fees.
Source: Yum! Brands Official Press Release