Yum Brands announced the sale of Pizza Hut in two separate deals worth $2.7 billion, sending its stock higher in trading.
The sale includes the transfer of Pizza Hut's business outside mainland China to LongRange Capital for $1.5 billion and the sale of its mainland China business to Yum China for $1.2 billion.
Investors reacted positively to the announcement, with Yum! Brands stock gaining almost 2% in morning trading.
The company also announced a new $4 billion plan to buy back its own shares from the market.
The sale comes after Pizza Hut faced several years of struggles, including a decline in sales due to increased competition from rival Domino's Pizza and food delivery platforms.
Yum expects to receive $2.3 billion in net proceeds from the transactions after taxes, fees, and other adjustments.
The deal is expected to close in the third quarter of 2026, subject to regulatory approvals.
