Operations

Yum sells Pizza Hut operations to private equity firm

Yum CEO Chris Turner described Pizza Hut as one of the restaurant industry's most recognizable brands and said the company believes LongRange is well-positioned to support its future growth.

Tetyana - stock.adobe.com

June 16, 2026

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Yum Brands has agreed to sell Pizza Hut operations outside mainland China to private equity firm LongRange Capital for approximately $1.5 billion, according to a press release, completing a strategic review of the pizza chain that began in late 2025. The company said the transaction will allow it to sharpen its focus on long-term growth initiatives while positioning Pizza Hut for its next phase under new ownership with restaurant industry experience.

The deal was part of a larger transaction that also saw Yum sell its China operations to Yum China Holdings for about $1.2 billion.

Yum CEO Chris Turner said the sale will enable the company to concentrate on its core priorities while continuing to leverage its scale, technology and talent. He described Pizza Hut as one of the restaurant industry's most recognizable brands and said the company believes LongRange is well-positioned to support its future growth.

Under the agreement, Yum could receive an additional $75 million earn-out payment by 2030. The company expects total net proceeds from the overall Pizza Hut transactions to be approximately $2.3 billion after taxes, fees and other adjustments, although it also anticipates about $85 million in one-time costs related to the separation during the remainder of 2026.

Despite the ownership change, Yum will continue to support Pizza Hut operations outside China through its Byte by Yum! technology platform and a transition services agreement designed to ensure an orderly separation. The company said fees from those services are expected to offset corporate expenses that had previously been allocated to Pizza Hut.

Yum's board unanimously approved the transaction and also authorized an additional $4 billion stock repurchase program. The company said proceeds from the sale will be used in accordance with its capital allocation strategy, including investments in the business and returning excess capital to shareholders. The deal is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions.