Yum! Brands Sells Pizza Hut in $2.7 Billion Divestiture

Yum! Brands completed the sale of Pizza Hut through two separate transactions totaling approximately $2.7 billion, ending nearly 30 years of ownership. The divestiture includes the sale of Pizza Hut operations in mainland China to Yum China Holdings for $1.2 billion, which closed on August 7, and the sale of all other global operations to LongRange Capital for $1.5 billion.

The LongRange Capital acquisition transfers approximately 15,600 locations across more than 100 countries. Yum! Brands remains eligible for an additional $75 million earn-out by 2030 if the chain meets undisclosed performance targets. As part of the transition, Pizza Hut will temporarily rebrand as Hut during the football season.

The decision to sell follows a portfolio review and years of stagnant sales in the United States, Canada, and Europe. The company attributed the decline to weak demand, increased competition, the rise of third-party delivery apps, and the growing use of GLP-1 weight-loss drugs.

CEO Chris Turner stated the move allows the company to operate as a more focused entity, leveraging its proprietary technology platform, Byte by Yum!, to drive growth for its remaining brands, including KFC, Taco Bell, and Habit Burger & Grill. Eduardo Luz is leading the brand's transition as a standalone business.