Yum Brands announced it will exit the Pizza Hut franchise in two deals worth $2.7 billion. Private‑equity firm Long Range Capital will buy Pizza Hut’s operations outside mainland China for about $1.5 billion, while Yum China Holdings will take the mainland China business for roughly $1.2 billion. Splitting the sale isolates the Chinese market, where Yum China trades separately.

The move caps a strategic review launched late last year after Pizza Hut’s sales trailed those of Taco Bell and KFC. Management said shedding the slower‑growing brand will free cash to fund higher‑margin concepts and support share‑repurchase programs. Investors welcomed the clarity, noting the divestiture could lift earnings per share.

Yum’s other brands, notably Taco Bell and KFC, have posted double‑digit same‑store sales growth, contrasting with Pizza Hut’s stagnation. The cash infusion from the deals will bolster the company’s balance sheet, enabling debt reduction and potential acquisitions in high‑growth segments.

Both transactions are expected to close in the third quarter, delivering immediate value to shareholders. By removing a lagging asset, Yum Brands aims to sharpen its earnings profile and redirect capital toward faster‑growing units. The split underscores a wider industry shift toward portfolio simplification to enhance returns.