Yum Brands sells Pizza Hut for US$2.7 billion in split deal

Yum Brands reveals it will sell Pizza Hut for US$2.7 billion. The deal will split one of the world’s largest pizza chains in two, sending the brand outside mainland China to a private equity firm, LongRange, and the mainland China business to the company’s 2016 spin-off, Yum China. The company and its subsidiaries franchise or operate over 63,000 restaurants in 155 countries and territories worldwide.

LongRange Capital will buy Pizza Hut outside mainland China for about US$1.5 billion, while Yum China Holdings will buy Pizza Hut in mainland China for about US$1.2 billion.

The sale ends a strategic review that Yum initiated in November 2025. The board approved it unanimously, and both transactions are expected to close in the third quarter of 2026, subject to regulatory approvals. After that, Yum will stop reporting Pizza Hut as a division and will run on KFC, Taco Bell, and Habit Burger & Grill.

According to Chris Turner, Yum Brands’ CEO, the transactions will allow the company to leverage its scale, technology, and expertise to deliver sustained value for its stakeholders. 

“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 adds.

Deal terms

Yum can collect an additional US$75 million by 2030 through an earn-out tied to the ex-China business. Across both sales, it expects approximately US$2.3 billion in net proceeds after taxes, fees, and closing adjustments, not counting that earn-out. The company says that its one-time separation costs will run approximately US$85 million through the rest of 2026.

Yum will keep supplying its Byte by Yum technology platform to Pizza Hut outside mainland China and will provide transition services during the separation. The company also says it expects the fees to offset the overhead it had assigned to the brand. Moreover, the board cleared an additional US$4 billion in share buybacks.

Pizza Hut runs more than 15,500 restaurants in 108 countries and brings in about US$10 billion in annual system-wide sales, according to LongRange. The firm says Pizza Hut has spent nearly seven decades shaping the pizza category, and introduced the Original Pan and Original Stuffed Crust pizzas.

“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” says Bob Berlin, founder and managing partner of LongRange. “We look forward to partnering with Yum to ensure a smooth transition for the business and working with Pizza Hut’s talented team and franchise partners to drive its next phase of growth through investments that deliver consistently great food and experiences for customers around the world.”Yum Brands says the deal positions Pizza Hut for future growth.

Meanwhile, Yum and Yum China say they will stay partners after the split. The two companies have agreed to financial incentives that pay off if system sales growth at KFC China accelerates, and they say they will work together on Taco Bell’s expansion in mainland China.

Yum says it will detail the financial impact, including any change to its 2026 outlook, on its second-quarter earnings call scheduled for July 30.

What it means for ingredient suppliers

A change of ownership at a chain this size reaches past the boardroom. Pizza Hut ranks among the world’s largest pizza chains. The questions for dairy and cheese suppliers serving the category will likely center around who owns that volume and what, if any, reformulations may occur.

Functional cheese for pizza has been an active line of dairy ingredient work. At Fi Europe 2025, Ornua laid out functional cheese formats built for pizza, ready meals, and quick-service applications, along with rising demand for customized dairy ingredients.

At the same time, cost and quality are also drawing focus. dsm-firmenich also recently spoke with us about optimizing cheddar cheese for sustainability and quality under economic pressure.