Yum sold Pizza Hut in 2 deals worth $2.7 billion
What's next: Yum expects the sales to close in the third quarter and net about $2.3 billion after taxes, fees and adjustments.
Yum Brands agreed to sell Pizza Hut in two transactions valued at about $2.7 billion, splitting the chain between private equity firm LongRange Capital and Yum China. LongRange will buy Pizza Hut for roughly $1.5 billion, excluding mainland China, while Yum China will acquire the mainland China business for about $1.2 billion. Yum said the move follows years of weak performance at Pizza Hut, which has lost ground to Domino's Pizza and delivery apps such as DoorDash. The company expects about $2.3 billion in net proceeds, excluding a possible $75 million earnout from LongRange by 2030, and about $85 million in one-time 2026 costs. Shares of Yum rose nearly 2% in morning trading.