M&A
confidence high
sentiment positive
materiality 0.90
Yum China to acquire Pizza Hut brand in Mainland China for $1.2B cash
Yum China Holdings, Inc.
- Cash consideration of $1.2B; implied LTM P/E of 19.5x, a 17% discount to peer median.
- Pizza Hut 2025 revenue $2.3B, op profit $183M; targets 6,000 stores by 2028 and double op profit by 2029.
- Transaction expected to close Q3 2026; immediately accretive to diluted EPS and margins once closed.
- No change to FY 2026 guidance on like-for-like basis; capital return plans reaffirmed ($1.5B in 2026).
- KFC China to receive decade-long financial incentive from Yum! Brands based on system sales growth.