Yum! Brands, Inc. (NYSE: YUM) has agreed to sell Pizza Hut in two separate transactions totaling $2.7 billion, according to a press release from the company.

Pizza Hut operations outside of Mainland China will be sold to LongRange Capital, a private equity firm, for approximately $1.5 billion, with an additional potential earn-out of $75 million by 2030. Pizza Hut's Mainland China business will be sold to Yum China Holdings, Inc. (NYSE: YUMC; HKEX: 9987) for approximately $1.2 billion.

After taxes, closing adjustments, and transaction-contingent fees, Yum! expects to receive approximately $2.3 billion in net proceeds, excluding the earn-out. The company expects to incur one-time separation expenses of approximately $85 million during the remainder of 2026.

Both transactions were unanimously approved by Yum!'s Board of Directors, which also authorized an incremental $4 billion share repurchase program. Yum! said net proceeds will be used in line with its capital allocation strategy, including returning excess capital to shareholders.

The transactions are expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions. Following the close, Yum! will no longer report a Pizza Hut division.

Yum! said it will continue to provide its Byte by Yum! technology platform to the Pizza Hut Ex-China business and will offer transition services under a separate agreement. The company also noted that Yum! and Yum China have agreed to financial incentives tied to KFC China's future system sales growth, and that both companies plan to advance Taco Bell's expansion in Mainland China.

Chris Turner, Chief Executive Officer of Yum! Brands, said the transactions "enable Yum! to be a more focused company" and that Pizza Hut "will be well positioned for future growth" under its new ownership.

Management expects to provide further financial details, including any updates to its 2026 outlook, during Yum!'s second-quarter earnings call scheduled for July 30, 2026. Barclays and Goldman Sachs are serving as financial advisers to Yum! on the transactions.