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Yum! Brands announced Tuesday that it has agreed to sell its Pizza Hut business for a total of $2.7 billion, which will see the iconic pizza chain split between private equity firms LongRange Capital and Yum China Holdings.

The decision follows a strategic review by the company aimed at creating greater value for shareholders and focusing on its other global restaurant brands.

Under the agreement, Pizza Hut’s business outside Mainland China will be sold to private investment firm LongRange Capital for approximately $1.5 billion, while Pizza Hut China will be acquired by Yum China Holdings for approximately $1.2 billion.

Yum! Said that the deal follows a comprehensive review of various strategic possibilities for the pizza chain, launched in November 2025.

According to the company, its leadership and board of directors concluded that different ownership structures would provide a better opportunity for Pizza Hut’s long-term growth as well as create greater value for shareholders.

The company said the new owners have extensive experience in the quick service restaurant industry and will tailor strategies to the needs of their respective markets.

Yum! Brands Chief Executive Officer Chris Turner said the deal would allow the company to operate in a more focused manner, while continuing to leverage its technology, talent and global reach to drive growth in its other businesses.

He described Pizza Hut as one of the most iconic restaurant brands in the world and praised its employees, franchise partners and team members who have contributed to its global expansion.

Yum! It expects to realize a net proceeds of approximately $2.3 billion after taxes, transaction- fees and other adjustments. This does not include potential additional performance-based payments.

The company may also receive an additional $75 million through 2030 under an agreement with LongRange Capital if certain performance targets are met.

The company also said that it may have to incur one-time expenses of approximately $85 million in the remaining period of 2026 to complete the business separation process.

Although Pizza Hut is being divested, Yum! Pizza Hut’s business outside China is promoted through its proprietary ‘Bite by Yum!’ Technology will continue to provide the services of the platform.

Additionally, the company will also provide certain corporate services during the transition period to ensure a smooth completion of the transfer of the business.