Yum Brands has agreed to sell Pizza Hut in a $2.7 billion deal split between Yum China and private equity firm LongRange Capital, marking a major restructuring of the global fast-food chain.
Under the agreement, Yum China will acquire the mainland China business for $1.2 billion, while LongRange Capital will take over Pizza Hut’s operations outside China for $1.5 billion.
The move highlights the diverging performance of the brand across markets, with China emerging as a stronger growth engine compared to the US and other global operations, which have been under pressure from rising costs and weaker consumer demand.
Pizza Hut has struggled in its core US market, where comparable store sales have declined for 10 straight quarters, weighed down by inflation, higher commodity prices and changing consumer preferences.
In contrast, the China business has seen stronger momentum, supported by localisation efforts, menu innovation and expansion plans that have helped it grow its store network and profitability.
The deal also reflects a broader trend of US companies handing greater control of China operations to local partners in order to better navigate regulatory and competitive conditions.
Yum Brands said the transaction is expected to close in the third quarter of 2026, subject to regulatory approvals, and confirmed it will retain ownership of KFC and Taco Bell.
Reuters
