Yum! Brands, Inc. has announced the completion of the sale of Pizza Hut, excluding Mainland China, to private equity firm LongRange Capital for approximately $1.5 billion, subject to customary closing adjustments.
The agreement includes potential earn-out consideration of up to $75 million payable by 2030, contingent on future operational performance benchmarks.
The completion of the transaction concludes Yum! Brands' full divestment of the Pizza Hut brand globally through two distinct corporate transactions generating an aggregate $2.7 billion. The transaction follows the completed sale of Pizza Hut's Mainland China operations to Yum China Holdings, Inc. on 7 August 2026 for $1.2 billion.
Transaction Breakdown and Valuation
The multi-part divestment realigns Yum! Brands' corporate balance sheet while transferring operational oversight of the global pizza franchise network to dedicated asset operators.
Key financial parameters and structural terms of the transaction include:
💰 Base Consideration: LongRange Capital acquires Pizza Hut Ex-China for approximately $1.5 billion in cash consideration, subject to working capital adjustments.
📈 Performance Earn-Out: Yum! Brands retains the opportunity to receive up to $75 million in additional earn-out payments through 2030 based on performance targets.
🌐 Aggregate Global Divestment: Combined with the $1.2 billion China brand sale to Yum China, total proceeds from the Pizza Hut divestment reach $2.7 billion.
🏢 Asset Perimeter: The acquisition incorporates Pizza Hut's global franchise operations, corporate store assets, supply contracts, and intellectual property outside Mainland China.
Portfolio and Digital Capabilities
The completed transaction marks an operational shift for Yum! Brands as the enterprise concentrates capital, corporate infrastructure, and research resources on its highest-growth restaurant concepts and digital proprietary platforms.
Chris Turner, Chief Executive Officer of Yum! Brands, stated that the completion of the transaction allows the company to move forward as a more focused organisation with significant international expansion opportunities. Turner noted that the enterprise will leverage its proprietary technology platform, Byte by Yum!, alongside store-level economics to accelerate growth across its remaining brand portfolio.
Following the divestment, Yum! Brands will focus operations around its core restaurant portfolio, comprising KFC, Taco Bell, and The Habit Burger Grill, which together encompass more than 50,000 restaurant locations globally.
Transaction Advisers
To execute the global corporate separation and asset transfers, Yum! Brands retained a syndicate of financial and legal advisory partners:
🏛️ Financial Advisory: Goldman Sachs and Barclays served as lead financial advisers to Yum! Brands.
⚖️ Lead Transaction Counsel: Weil, Gotshal & Manges LLP acted as transaction counsel for the Pizza Hut Ex-China sale.
📜 Corporate and IP Counsel: Baker McKenzie provided international corporate and intellectual property counsel.
📑 Separation Advisory: Dinsmore and Shohl LLP advised Yum! Brands on commercial contract separation.
🔍 China Transaction Counsel: Mayer Brown LLP served as legal transaction counsel for the preceding Pizza Hut China transfer to Yum China.
About the Companies
Yum! Brands, Inc.: Headquartered in Louisville, Kentucky, Yum! Brands, Inc. develops, operates, and franchises global restaurant chains including KFC, Taco Bell, and The Habit Burger Grill across more than 150 countries and territories.
LongRange Capital: LongRange Capital is a private equity investment firm focused on partnering with market-leading consumer, industrial, and technology businesses to drive operational value and long-term expansion.
