Yum! Brands offloads Pizza Hut for $2.7B, splits chain between LongRange Capital and Yum China
Yum! is exiting Pizza Hut in a two-part deal: LongRange Capital buys ex-China ops for $1.5B, Yum China takes the China business for $1.2B. Net proceeds of $2.3B fund a $4B buyback. India franchisee network (2,000+ stores across KFC, Taco Bell, Pizza Hut) faces ownership reshuffle. Close expected Q3 2026.
What happened
Yum! Brands is divesting Pizza Hut for $2.7 billion in two deals—LongRange Capital takes ex-China ops for $1.5B, Yum China takes China for $1.2B. Affects Pizza
Key facts
- $2.7 billion enterprise value
- $1.5 billion ex-China deal
- $1.2 billion China deal
- $2.3 billion net proceeds
- $4 billion buyback
- $85 million one-time expense
- 2,000+ India stores
- 63,000 restaurants
- 155 countries
Why this matters
The bifurcated structure — financial sponsor for ex-China, strategic for China — is a template for carving out underperforming brands from multi-concept portfolios when a single buyer can't clear the price.