Yum Brands sells Pizza Hut chain to China's Yum China for $2.7 billion
U.S. restaurant operator Yum Brands has agreed to sell its global Pizza Hut chain to Yum China for $2.7 billion. The deal hands the struggling brand to a partner that already operates more than 3,500 Pizza Hut outlets across the mainland.
The deal hands global control of Pizza Hut to Yum China, which spun off from Yum Brands in 2016 and now runs more than 3,500 Pizza Hut restaurants on the mainland. The buyer will take on roughly 19,000 outlets along with global franchising rights and intellectual property, while Yum Brands cited the need to ease cashflow pressure. The BBC notes the agreement follows a wave of store closures in the chain's traditional markets in the United States and the United Kingdom.
Pizza Hut has lagged behind sister brands KFC and Taco Bell for the past three years, particularly losing ground to delivery rivals in the Americas and Europe. Yum China said its "lighter and faster" service model trialled domestically would be scaled internationally under its ownership. Yum Brands shares saw a muted reaction in the wake of the announcement.
The transaction stands out as the first wave in which major franchise operators in China are buying global control of legacy Western brands. Once regulatory approvals are completed, Pizza Hut's global headquarters will formally relocate to Shanghai. Analysts said the real test will be repositioning the chain in markets where online ordering already drives more than half of sales.
Read next
No Taiwan call and no new arms sales: how Trump is preparing to welcome Xi to Washington
South China Morning Post reports the White House has postponed a planned phone call with Taiwanese President Lai Ching-te and shelved a pending arms sales package as it prepares for Xi Jinping's visit in September. The Trump administration also agreed to open talks with Beijing on semiconductor export controls. Taiwan's foreign ministry said it has not been formally briefed by Washington.
Israel suspends contacts with EU foreign policy chief Kaja Kallas
Mexico homicide rate keeps falling as World Cup festivities reinforce voluntary truce
Intel stock jumps 8% after Trump unveils Apple US chip design partnership
New Zealand’s Lyttelton Port owner weighs lease proposal from Dubai-based investor
