Yum Brands has agreed to sell Pizza Hut in a $2.7bn transaction that splits the pizza chain between private equity and its former subsidiary. The Kentucky-based restaurant group will transfer most Pizza Hut assets to Long Range Capital for $1.5bn, while mainland China operations go to Yum China for $1.2bn.

The deal marks Yum's exit from the pizza business to focus on its core KFC and Taco Bell brands. Long Range Capital, whose portfolio spans fitness clubs and funeral services, will take control of Pizza Hut's international operations outside China. Yum China, which separated from the parent company a decade ago, already operates KFC and Taco Bell across mainland China.

CEO Chris Turner said the moves position both businesses for growth while delivering shareholder value. Yum expects regulatory approval and closing in the third quarter of 2026. The transactions reflect ongoing consolidation in the restaurant sector as chains streamline portfolios.

This represents a significant strategic shift for Yum Brands, reducing its global footprint while generating cash to invest in higher-growth concepts. The company's focus on fried chicken and Mexican fare aligns with stronger consumer demand in those categories.