DivestmentAug 5, 2026, 06:07 AM
Yum! Brands to Sell Pizza Hut for $2.3B; Q2 Net Income $853M
AI Summary
Yum! Brands announced definitive agreements to sell its Pizza Hut brand, both ex-China and in Mainland China, expecting approximately $2.3 billion in net proceeds. The company reported strong financial results for Q2 2026, with Net Income significantly increasing to $853 million and Diluted EPS rising to $3.08. These results were positively impacted by a substantial deferred tax benefit related to the Pizza Hut divestiture. Additionally, the Board authorized a new $4 billion share repurchase program and declared an increased quarterly dividend.
Key Highlights
- Yum! Brands entered definitive agreements to sell Pizza Hut (Ex-China and Mainland China) for approximately $2.3 billion net proceeds.
- Q2 2026 Net Income increased to $853 million from $374 million in Q2 2025.
- Q2 2026 Diluted EPS rose to $3.08 from $1.33 in Q2 2025.
- Total Revenues for Q2 2026 reached $2,169 million, up from $1,933 million in Q2 2025.
- Board authorized a new $4 billion share repurchase program through June 30, 2028.
- Declared a Q2 2026 dividend of $0.75 per common share, up from $0.71 in Q2 2025.
- Recognized a $359 million deferred tax benefit related to the Pizza Hut divestiture.
- YTD 2026 Net Cash Provided by Operating Activities was $923 million.
Price Impact
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