[International] After 10 Consecutive Losing Quarters, Yum Brands Sells Pizza Hut for $2.7 Billion; China Market to 'Fly Solo'
bella@@ 央廣 新聞3h ago
Global dining giant Yum Brands announced on the 17th that it will sell its struggling pizza brand Pizza Hut business for a total price of $2.7 billion (approximately NT$87.5 billion). Among them, the China market will be acquired by Yum China Holdings for $1.2 billion, while the remaining businesses covering the United States and over 100 countries worldwide will be taken over by private equity firm LongRange Capital for $1.5 billion. In the future, Yum Brands plans to concentrate its resources on its remaining core brands such as KFC and Taco Bell.
According to reports from BBC and Reuters, the Pizza Hut brand is a significant business for Yum Brands. As the U.S. market accounts for about 40% of Pizza Hut's global international revenue, its performance there is crucial for the brand. After Pizza Hut's U.S. performance declined for 10 consecutive quarters, Yum Brands first revealed in November 2025 that it was evaluating the possibility of a sale.
Yum Brands stated that the business sold to private equity firm LongRange Capital covers over 100 countries worldwide and more than 15,500 restaurants. In contrast, the already spun-off Yum China currently operates 4,375 Pizza Hut outlets and has shown significantly better operational performance in recent years compared to other global markets, thus gaining operational rights for the brand in China through this sale.
Performance Crushed by Raw Material Costs and External Competition
Reports indicate that in recent years, Pizza Hut's sales have been impacted by rising inflation, increasing raw material costs, and the widespread use of GLP-1 weight-loss drugs, leading consumers to gradually shift towards healthier dietary choices, putting continuous pressure on its operational performance. Furthermore, Pizza Hut faces price competition from major chain brands like Domino's, Papa John's, and Little Caesars. The rise of third-party delivery platforms also makes it easier for consumers to access various dining brands, weakening the competitive advantage that large chain brands previously built on their scale of outlets.
Pizza Hut was acquired by PepsiCo in 1977 and was spun off from PepsiCo along with KFC and Taco Bell in 1997, eventually consolidating into the current Yum Brands Inc. in 2002.
Yum Brands stated that the sale is expected to be completed in the third quarter of 2026, subject to regulatory approval. After the transaction is completed, Yum Brands will retain its two major core brands – KFC and Taco Bell.
Yum China was originally the China business spun off from Yum Brands. Its major shareholders currently include private equity firm Primavera Capital and Ant Group, supported by Alibaba founder Jack Ma.
Yum China's Market Shines, Seizing the Opportunity
In recent years, Yum China has continuously launched products that meet the needs of the local market, becoming one of China's largest casual dining chain brands. In the first quarter of this year, it added 207 new outlets and plans to expand its total number of stores to over 6,000 by 2028.
Financial reports show that in 2025, China Pizza Hut's revenue increased by 4% year-on-year, operating profit grew by 19%, and its operating profit margin reached 7.9%, the highest since 2016.
Market analysts believe that Yum China's acquisition reflects its confidence in the long-term growth potential of the Chinese dining market and aligns with the trend of multinational corporations gradually handing over their China operations to local teams in recent years. Examples include General Mills selling its Haagen-Dazs store business in China and Starbucks selling a majority stake in its China business, all reflecting this strategic direction.
As for Taiwan Pizza Hut, it is currently operated by FPC (F&B Properties Company Limited) under the Jardine Matheson Group in Hong Kong and is not directly held by Yum Brands.
Source Link: https://www.rti.org.tw/news?uid=3&pid=215110
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