Yum China Holdings, Inc. Acquires Ownership of Pizza Hut Brand in Mainland China

Yum China Holdings, Inc. has entered into a definitive agreement with Yum! Brands, Inc. to acquire the Pizza Hut brand in Mainland China for $1.2 billion. This acquisition, expected to close in the third quarter of 2026, will eliminate the need for Pizza Hut China to pay license fees to Yum! Brands, thereby enhancing restaurant and operating profit margins. The transaction is anticipated to be immediately accretive to diluted EPS starting in 2026. Yum China plans to fund the acquisition through a combination of cash and debt financing, while maintaining its commitment to shareholder value through capital return plans. The company aims to expand Pizza Hut's footprint to over 6,000 stores by 2028 and double its operating profit by 2029. Yum China will continue its strong partnership with Yum! Brands for the KFC brand, with KFC China targeting expansion to over 17,000 stores by 2028.