Yum Brands sells off Pizza Hut. What it means for KFC, Taco Bell owner
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- Yum Brands announced sale of Pizza Hut for $2.7 billion, ending a 29‑year ownership.
- Sale splits Pizza Hut: $1.2B to Yum China and $1.5B plus $75M earn-out to LongRange.
- Yum expects about $2.3 billion net proceeds and authorized a $4 billion stock repurchase.
Louisville-based Yum Brands on Tuesday announced the sale of Pizza Hut for $2.7 billion, severing it from sister brands KFC and Taco Bell after nearly 29 years.
The sale, which is expected to close in the third quarter of 2026, has been approved unanimously by Yum’s board and is subject to regulatory approval. Shares rose on the news.
The company is selling the chain in two parts: Pizza Hut China will sell to Yum China Holdings Inc. for $1.2 billion; Pizza Hut outside of China will sell to LongRange Capital, a private equity firm, for $1.5 billion with an additional potential earn-out of $75 million by 2030, according to the news release.
Yum said it expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments and transaction fees, excluding the earn-out. Yum also expects to incur one-time expenses of about $85 million for the separation.
Why Yum is selling Pizza Hut
The sale comes after a comprehensive review of Pizza Hut that began in November 2025. It is intended to strengthen the remaining company, according to the announcement.
Yum Brands acquired Pizza Hut, KFC and Taco Bell in 1997 from PepsiCo, which had owned the pizza chain since 1977. The restaurant started in 1958 and is now the second-largest pizza company in the world (behind Domino’s) with more than 19,000 restaurants in 108 countries and nearly $12.8 billion in total sales in 2025, according to the company.
In February, Yum announced it was considering a sale and planned to close 250 restaurants.
Although the chain has struggled in recent years, Pizza Hut has recently seen big success in some locations that have returned to a retro look.
“These transactions enable Yum! to be a more focused company ... and deliver sustained value for our stakeholders,” Chris Turner, chief executive officer, Yum Brands, said in the release. “Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter.”
The Yum board also authorized a $4 billion repurchase of common stock, according to the announcement.
This story was originally published June 16, 2026 at 10:17 AM.
