Pizza Hut will be sold for $2.7 billion as Yum Brands exits the chain

Yum Brands said it will sell Pizza Hut for $2.7 billion, ending its direct ownership of one of the world’s best-known pizza chains and splitting the business between two buyers.

LongRange Capital will buy Pizza Hut’s business outside mainland China for about $1.5 billion. Yum China Holdings will buy the chain’s mainland China operations for about $1.2 billion, the company said.

The transaction is expected to close in the third quarter of 2026, pending the usual approvals and closing steps.

Why Yum is selling

The sale marks a strategic reset for Yum, which has been putting more emphasis on stronger-performing brands such as KFC and Taco Bell.

Chief Executive Chris Turner said the move will let the company focus its capital and management attention on businesses with better sales momentum.

Pizza Hut has been under pressure for years as delivery culture changed the pizza market and third-party delivery apps gave customers more alternatives. AP reported that the chain has struggled to keep pace with rivals as the category became more crowded.

The weakness has shown up in the numbers. AP said Pizza Hut’s U.S. sales fell 8.2% in 2025, according to Technomic.

How the deal came together

AP reported that Yum began exploring options for Pizza Hut in November 2025. The company then announced the sale on June 16, 2026.

The structure reflects Pizza Hut’s different footprints in different markets. LongRange is taking the business outside mainland China, while Yum China is buying the mainland China operations separately.

That split also reflects the scale of Pizza Hut’s China business, which is large enough to merit its own transaction rather than being bundled into the rest of the sale.

Other outlets, including Business Insider, the New York Post and The Wall Street Journal, later reported the same valuation and deal structure, reinforcing the transaction as a confirmed corporate sale rather than a rumor or exploratory review.

What the buyers said

Turner framed the sale as a way for Yum to sharpen its portfolio and redirect resources toward brands that it believes have stronger growth prospects.

LongRange founder Bob Berlin said he looked forward to working with Pizza Hut’s executive team and franchisees to drive growth. His comments suggest the firm is treating the chain as an operating turnaround, not just a financial asset.

For Yum China, the deal creates a separate ownership path for Pizza Hut’s mainland business. The company has not yet detailed any operational changes, but the transaction gives it direct control over that market.

What happens next

The next major milestone is closing, which Yum said it expects in the third quarter of 2026.

Until then, the deal still needs to clear the standard approvals and closing requirements.

The biggest unanswered questions involve how the new owners will handle the business day to day. It is not yet clear whether LongRange will change store counts, franchise terms or turnaround spending outside China.

It is also unclear whether Yum China will alter Pizza Hut’s operating model or menu in mainland China after the handoff.

Pizza Hut still has meaningful scale despite its struggles. AP said the chain ended last year with 19,974 restaurants worldwide, underscoring why the brand remains significant even as its performance has lagged.

The sale closes a chapter for Yum and opens another for Pizza Hut, which will now be split between owners that say they see room for growth but still face a brand that has lost momentum in a crowded delivery market.