Yum China buys Pizza Hut China for $1.2B, aiming to expand and boost profits by 2029.

Yum China has agreed to acquire full ownership of the Pizza Hut brand in Mainland China from Yum! Brands for $1.2 billion. This move ends license fees to Yum! Brands and gives Yum China greater control to innovate and expand Pizza Hut's presence from 4,375 to over 6,000 stores by 2028. The company aims to double Pizza Hut's operating profit by 2029, enhancing margins and earnings per share immediately after closing, expected in Q3 2026. Yum China will fund the deal with cash and debt while maintaining its capital return plans to shareholders.