Yum China completes $1.2B Pizza Hut brand acquisition from Yum! Brands

Yum China Holdings, Inc.

• Completed acquisition of Pizza Hut brand in Mainland China from Yum! Brands for US$1.2B cash; first announced June 16, 2026.
• 3% license fee savings expected to add 2.8% to Pizza Hut restaurant and OP margins net of VAT, bringing margins closer to KFC.
• Plans to accelerate Pizza Hut net new store openings from >600 to >800 per year in 2027-2028.
• Deal expected slightly accretive to diluted EPS in 2026, mid-single-digit accretive in 2027-2028.
• Funded with offshore RMB bridge loan ~US$1.2B, 12-month tenor, ~2% interest; longer-term financing under review.