WASHINGTON (dpa-AFX) - Yum! Brands (YUM) said Yum! will sell Pizza Hut, excluding Mainland China, to LongRange Capital for approximately $1.5 billion. Yum! has the opportunity to receive an earn-out of $75 million by 2030. Also, Yum! will sell Pizza Hut in Mainland China to Yum China Holdings, Inc. for approximately $1.2 billion.
Yum! expects to receive approximately $2.3 billion of net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earn-out. Yum! additionally expects to incur one-time expenses of approximately $85 million during the remainder of 2026 to effectuate the separation. The net after-tax proceeds will be used in accordance with the capital allocation strategy, including investing in the business and returning excess capital to shareholders. Yum! expects the transactions to close in the third quarter of 2026.
Concurrent with approval of the transactions, Yum!'s Board approved an incremental $4 billion authorization for the repurchase of common stock. The company will provide additional information regarding the financial impact of the transaction, including any related updates to its 2026 financial outlook, during second-quarter earnings conference call scheduled for July 30, 2026.
In pre-market trading on NYSE, Yum! Brands shares are up 0.85 percent to $156.00.
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