Yum China completes $1.2 billion Pizza Hut deal

• Yum China completed its $1.2 billion acquisition of the Pizza Hut brand in Mainland China from Yum! Brands.
• The company expects removing Pizza Hut’s 3% license fee to improve restaurant and operating margins by about 2.8 percentage points.
• Yum China plans to increase Pizza Hut net new openings from more than 600 to over 800 annually in 2027 and 2028.

Yum China (NYSE:YUMC) completed its $1.2 billion acquisition of Pizza Hut brand ownership in Mainland China from Yum! Brands (NYSE:YUM), ending its licensee status after 36 years.

The transaction removes the 3% Pizza Hut license fee paid to Yum! Brands, which Yum China expects will improve restaurant and operating profit margins by about 2.8 percentage points after VAT.

Yum China said it plans more than 800 Pizza Hut net openings annually in 2027 and 2028, while financing the purchase with an offshore RMB-denominated bridge loan equivalent to about $1.2 billion at roughly 2% interest.

Following the announcement, Yum China's share price was down 0.48% at $43.58 in the latest available quote.

Pizza Hut China generated $2.3 billion in segment revenue and $183 million in operating profit during 2025, with 4,375 restaurants across more than 1,100 cities at March 31, 2026.

Yum China said it is targeting more than 6,000 Pizza Hut stores by 2028 and expects operating profit to double by 2029 compared with 2024 levels.