Yum! Brands sheds Pizza Hut to prioritize Taco Bell, KFC

With nearly $3 billion in cash from the sale of its Pizza Hut brand, Yum! brands plans to focus on its restaurants with greater growth potential. 

The company completed the sale of Pizza Hut’s business, outside of mainland China, to LongRange Capital on Sept. 1 for more than $1.5 billion. In the previous month, Yum! sold its Pizza Hut business in mainland China to Yum China Holdings Inc. for $1.2 billion. Together, the transactions brought in roughly $2.7 billion.

“With Pizza Hut now exiting the portfolio, I think we are very excited about putting our energy into acceleration of growth,” said Yum! CFO Ranjith Roy at the Barclays 19th Annual Global Consumer on Sept. 9. 

This is Yum!’s first brand sale since it spun off A&W and Long John Silver’s more than a decade ago. Pizza Hut had become a drag on the company’s portfolio after years of declining sales and store closures. Unlike Dominos, Pizza Hut was slow to adapt online ordering systems and delivery infrastructure, and instead has large, dine-in locations operating at high costs. Pizza restaurants have declined in the U.S. overall, as consumers spend less and seek healthier options.

In the U.S., Pizza Hut recorded negative annual same-store sales growth for the past three years, and growth remained flat in the first quarter of 2026. The chain ended its final quarter with nearly 8% fewer restaurants than five years ago. 

Roy pointed to Taco Bell, KFC and The Habit Burger Grill as having significant opportunities ahead. Taco Bell has continued to post strong results, recording same-store sales growth of 8% and 7% in the first and second quarters. The chain also announced a limited-edition sauce in collaboration with language-learning app Duolingo on Oct. 1.

While system-sales have declined by 2% since last year in the U.S., KFC is instead pursuing international growth and a brand overhaul. The chain opened 660 restaurants across 55 countries in the second quarter and introduced an identity and menu strategy centered on boneless chicken, beverages and sauces.

While the company’s primary focus remains on improving Taco Bell and KFC, Yum! is also open to adding another brand to its portfolio, said Roy. “We are prepared to make bold moves around our portfolio where it makes sense,” he said. 

Yum! is scheduled to report its third-quarter earnings on Nov. 4. Wall Street expects earnings per share of $1.57, and a revenue increase of $2.18 billion. Yum! stock fell nearly 9%, closing at $136.97 on Monday.