Consumers queue outside a Pizza Hut restaurant in Shanghai on January 17, 2025. Photo: VCG

Yum China Holdings, Inc. (Yum China) announced on Tuesday that it has entered into a definitive agreement with Yum! Brands, Inc. (Yum! Brands) to acquire ownership of the Pizza Hut brand in the Chinese mainland at a cash consideration of $1.2 billion, the Global Times learned from the company. 

Upon closing, Pizza Hut China will no longer be subject to the license fees previously payable to Yum! Brands, according to a press release that Yum China shared with the Global Times on Tuesday.

Pizza Hut is one of the largest casual dining restaurant brands in China and continues to capture significant growth opportunities in the market. In 2025, Pizza Hut reported segment revenue of $2.3 billion and segment operating profit of $183 million, and in the first quarter of 2026, it delivered its 13th consecutive quarter of same-store transaction growth and its eighth consecutive quarter of restaurant margin and operating profit expansion, according to the company.

With 4,375 restaurants across more than 1,100 cities, Yum China is targeting the expansion of Pizza Hut's footprint to over 6,000 stores by 2028 and the doubling of its operating profit by 2029 compared with that for 2024, as previously outlined at Yum China's Investor Day in November 2025, said Yum China. 

"Moving from the exclusive licensee to the brand owner of Pizza Hut in [the Chinese mainland] represents a transformative milestone for us, demonstrating our conviction and long-term commitment to the China market. We see tremendous opportunities ahead, and we are still only at the early stage of our planned growth trajectory for Pizza Hut China," said Joey Wat, CEO of Yum China, in the company's press release. 

"Becoming the brand owner will give the Company greater strategic flexibility to drive innovation across the menu, store formats, new modules, and operations," Wat said.

As the company embarks on the next chapter of Pizza Hut's growth in China, going forward, Yum China and Yum! Brands remain fully committed to a strong partnership to unlock growth in the KFC brand. KFC will continue to be the key growth engine for Yum China, according to the company.

Yum China's Board of Directors approved the transaction after a thorough review with the management team. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions.

On a like-for-like basis, Yum China's 2026 full year financial guidance remains unchanged. With the elimination of license fee payments to Yum! Brands for the Pizza Hut brand, the Company expects the transaction to immediately enhance Pizza Hut China's and therefore Yum China's restaurant margins and OP margins. 

Yum China is one of the largest restaurant companies in China. The company operates over 18,000 restaurants under six brands across over 2,600 cities in China. KFC and Pizza Hut are the leading brands in the quick-service and casual dining restaurant spaces in China.

Global Times