YUM CHINA (09987) plans to acquire the ownership of Pizza Hut brand in mainland China for 1.2 billion US dollars.

YUM CHINA (09987) announced that on June 16, 2026, the company (as the buyer) entered into an agreement with Yum! Brands (as the seller), in which YUM CHINA agreed to acquire, and Yum! Brands agreed to cause its affiliate to sell the equity (i.e. all issued and outstanding shares of Willow Glade Investments, LLC) to YUM CHINA for a cash consideration of 1.2 billion USD. Under a master franchise agreement with an affiliate of Yum! Brands, YUM CHINA now has the exclusive operating rights and authorized operating rights for Pizza Hut businesses in mainland China. Upon completion of the transaction, YUM CHINA will acquire all equity of the target company and gain ownership of the Pizza Hut brand in mainland China through the target company, and will no longer have to pay franchise fees to Yum! Brands. Pizza Hut is China's largest casual dining brand, continuously seizing significant growth opportunities in the market. In 2025, Pizza Hut achieved branch revenue of 2.3 billion USD and branch operating profit of 183 million USD, and in the first quarter of 2026, its same-store sales growth continued for the 13th consecutive quarter, with restaurant margins and operating profits increasing for the eighth consecutive quarter. With a network of 4,375 restaurants operating in over 1,100 towns, YUM CHINA plans to further expand Pizza Hut's business footprint, aiming to increase the number of stores to over 6,000 by 2028 and double operating profits by 2029 compared to 2024, as previously outlined at YUM CHINA's investor day in November 2025. Transitioning from the exclusive franchise operator of Pizza Hut in mainland China to the brand owner represents a milestone of transformation for the company, demonstrating its strong confidence and long-term commitment to the Chinese market. Becoming the brand owner will provide the company with greater strategic flexibility to drive continuous innovation in menu, store models, new formats, and operational management. Additionally, no longer paying franchise fees to Yum! Brands will improve the store's economic model, reduce entry barriers, support profit margin growth, accelerate growth, and strengthen Pizza Hut's market leadership position in China.