Yum! Brands announced a deal to sell Pizza Hut for a staggering $2.7 billion. The company made the decision to split the chain between two different buyers. Private equity firm LongRange Capital is buying every Pizza Hut locations outside of mainland China for $1.5 billion. According to reports, it might pay an extra $75 million by 2030. Yum China is buying the remaining locations for $1.2 billion.

Pizza Hut has New Owners but the Same Tech

Pizza Hut
Yum! Brands finalizes sale of Pizza Hut to two separate firms; Photo: MIKOPhotography/Shutterstock

While the pizza chain is getting new owners, the equipment that runs the operations isn’t changing much. According to Yum!, it will provide its own technology platform to LongRange’s locations. The company will also provide some corporate services.

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In total, Yum! expects to walk away with about $2.3 billion after taxes and fees. However, it will spend about $85 million this year to finish the separation.

Yum! Brands CEO Chris Turner explained the decision in a press statement:

“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders. Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter.”

Yum! Brands, Inc., and its subsidiaries franchise or operate more than 63,000 restaurants in 155 countries and territories under its iconic brands: KFC, Taco Bell, Pizza Hut and Habit Burger & Grill.