Yum China Holdings has finalized the purchase of the Pizza Hut brand rights in Mainland China from Yum! Brands in a deal valued at $1.2 billion. The transaction, first announced in June, transfers ownership of the brand to Yum China, which has operated the chain locally for 36 years. CEO Joey Wat said the removal of the 3% license fee payable to Yum! Brands is expected to add 2.8% to Pizza Hut's restaurant and operating profit margins, net of VAT, and make Pizza Hut's restaurant margin closer to KFC's in the near term. The company expects the acquisition to be slightly accretive to diluted earnings per share in 2026 and mid-single-digit accretive in 2027 and 2028, and plans to accelerate Pizza Hut's net new store openings to more than 800 per year in 2027 and 2028 from an original target of over 600. Yum China arranged an offshore yuan-denominated bridge loan of approximately $1.2 billion with a 2% interest rate and up to 12-month tenor to fund the deal.
Yum China Holdings IncCompletes $1.2B acquisition of Pizza Hut brand rights, eliminating 3% license fee, boosting margins and EPS accretion.
Yum! Brands Inc
