Yum China Acquires Pizza Hut Brand in Mainland China for $1.2B

Yum China Holdings, Inc. announced it has entered into a definitive agreement to acquire ownership of the Pizza Hut brand in Mainland China from Yum! Brands, Inc. for a cash consideration of $1.2 billion. This acquisition will eliminate license fees previously payable to Yum! Brands, enhancing Pizza Hut China's store economics and margins, and is expected to be immediately accretive to diluted EPS starting in 2026. The company targets expanding Pizza Hut's footprint to over 6,000 stores by 2028 and doubling its operating profit by 2029 compared to 2024. Additionally, Yum China and Yum! Brands remain committed to the KFC brand, with KFC China targeting over 17,000 stores by 2028 and becoming eligible for a decade-long financial incentive.