Yum! Brands to Sell Pizza Hut for $2.7B, Far Below Domino's $10.2B Valuation
DPZ•Yum! Brands agreed to sell Pizza Hut for $2.7 billion—$1.5 billion to LongRange Capital and $1.2 billion to Yum China—equal to about 26% of Domino's Pizza’s $10.2 billion market valuation. Pizza Hut’s US sales fell 5% in 2025 even as Domino’s performance remained robust.
1. Details of the Pizza Hut Sale
Yum! Brands will divest Pizza Hut in a two-part transaction valued at $2.7 billion, selling the core international brand to LongRange Capital for $1.5 billion and its China unit to Yum China for $1.2 billion. Purchase price adjustments could apply post-close.
2. Rationale Behind the Divestiture
The decision follows a strategic review initiated in November 2025 to secure external investment and operational support for Pizza Hut, whose US same-store sales fell 5% in 2025. Yum! Brands aims to focus on higher-growth concepts like KFC and Taco Bell.
3. Implications for Domino’s Pizza
Domino’s Pizza, valued at $10.2 billion, retains market leadership as Pizza Hut underperforms, highlighting Domino’s stronger growth trajectory. The disparity in valuations underscores investor confidence in Domino’s digital ordering platform and consistent sales momentum.
