Yum China completes $1.2 billion Pizza Hut acquisition

Yum China has finalized its $1.2 billion acquisition of the Pizza Hut brand in mainland China from Yum! Brands. This transaction marks a transition from a 36-year licensing agreement to full brand ownership for the operator.

To fund the purchase, Yum China secured an offshore yuan-denominated bridge loan of approximately $1.2 billion with a 12-month tenor and a 2% interest rate. The company expects the removal of the 3% license fee previously paid to Yum! Brands to increase Pizza Hut’s restaurant and operating profit margins by approximately 2.8%.

Following the acquisition, Yum China plans to accelerate its expansion, increasing its target for net-new Pizza Hut restaurant openings from 600 to more than 800 annually over the next two years. The company aims to reach more than 6,000 locations by 2028 and intends to double the brand’s operating profit by 2029.