Yum Brands (YUM) stock edged higher Tuesday morning after the company announced it is selling Pizza Hut in two separate deals worth a combined $2.7 billion. The stock was up 0.9% in premarket trading after closing Monday at $154.67, up 0.2%. Year-to-date, the stock has gained about 2.2%.
Private equity firm LongRange Capital will take over Pizza Hut’s operations outside of mainland China for around $1.5 billion. Yum China Holdings (YUMC) will separately acquire the mainland China business for approximately $1.2 billion.
After taxes, closing adjustments, and fees, Yum expects to pocket about $2.3 billion in net proceeds across both deals. There is also a potential earn-out of $75 million by 2030 from LongRange.
Yum will also take on one-time costs of around $85 million for the rest of 2026 related to the transactions. Both deals are expected to close in the third quarter, pending regulatory approval.
The announcement puts an end to years of speculation after Yum said in November 2025 it was exploring strategic options for Pizza Hut. Pizza Hut’s sales had been slowing for years, dragging on the overall business.
Pizza Hut’s problems are no secret. The chain was once the world’s largest pizza brand, holding that title until 2017 when Domino’s overtook it. Since then, Domino’s has steadily gained market share while Pizza Hut struggled to adapt.
The shift away from its iconic sit-down restaurants toward delivery and carryout came too slowly. Third-party apps like DoorDash further cut into its sales. Pizza Hut was fighting on multiple fronts and losing on most of them.
At the end of 2025, Pizza Hut had nearly 20,000 locations across 108 countries and territories, with $12.8 billion in annual system sales. The U.S. accounts for about 40% of those sales, with China at roughly 20%.
Yum CEO Chris Turner said the deals allow the company to focus its attention and capital on technology, talent, and delivering value for stakeholders. KFC and Taco Bell remain in the Yum portfolio.
More detail on the financial impact will come during Yum’s second-quarter earnings call on July 30.
The sale ends a relationship that dates back decades. PepsiCo bought Pizza Hut in 1977, eventually adding Taco Bell and KFC before spinning off the restaurant group in 1997 as Tricon Global Restaurants, later renamed Yum Brands.
Pizza Hut itself was founded in 1958 by brothers Dan and Frank Carney in Wichita, Kansas, and went public in 1969.
Yum China (YUMC) dipped 1.02% in after-hours trading following the news.
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