$2.7B is the headline transaction value for Yum Brands $YUM, which entered agreements to sell Pizza Hut in two parts, according to the company's June 16 release carried by Yahoo Finance. LongRange Capital will buy Pizza Hut excluding Mainland China for about $1.5B, while Yum China will buy Pizza Hut China for about $1.2B.

The deal qualifies as Tier-1 M&A because the announced consideration is above $500M and the parties, values and closing window are named. The release also says Yum can receive an additional $75M earn-out by 2030 and that both transactions are expected to close in Q3 2026, subject to regulatory approvals and other customary closing conditions.

Transaction leg	Buyer	Value
Pizza Hut Ex-China	LongRange Capital	About $1.5B
Pizza Hut China	Yum China	About $1.2B
Potential earn-out	LongRange structure	$75M by 2030
Share repurchase authorization	Yum board approval	Incremental $4B

For $YUM shareholders, the immediate financial issue is capital allocation after the sale. The company said the board approved an incremental $4B repurchase authorization alongside the divestiture, while the release names Barclays and Goldman Sachs as financial advisers and Weil, Gotshal & Manges and Mayer Brown as legal advisers.

For Yum China, the China leg consolidates Pizza Hut China under the operator that already runs the brand locally. The next items to watch are regulatory approvals, final closing in Q3 2026 and Yum's post-close segment reporting, because the company said it will no longer report a Pizza Hut division after the transactions close.

Not investment advice. Verify all figures with primary sources before acting.

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Yum $YUM sells Pizza Hut for $2.7B; $4B buyback added