07.08.2026 14:11
Yum China has acquired the rights to the Pizza Hut brand, which has operated in mainland China for 36 years, from Yum! Brands for $1.2 billion. With the deal, the company aims to reduce licensing costs while raising its growth target. Pizza Hut plans to open more than 800 new stores annually in China in 2027 and 2028.
A notable acquisition has taken place for Pizza Hut operating in China. Yum China purchased the Pizza Hut brand, which has been operating in mainland China for 36 years, from its parent company Yum! Brands for $1.2 billion.
With the deal, the company will also save on the 3% licensing fee it previously paid to Yum! Brands.
EXPECTED CONTRIBUTION OF 2.8% TO PROFIT MARGINS
According to a statement from Pizza Hut, the savings from the elimination of the licensing fee, after deducting value-added tax, are expected to contribute approximately 2.8% to restaurant and operating profit margins.
The company anticipates that the impact of the acquisition on financial results will increase gradually. The deal is expected to provide a "slight" contribution to diluted earnings per share in 2026, and mid-single-digit growth in 2027 and 2028.
BRIDGE LOAN USED FOR THE ACQUISITION
Yum China announced that it used an offshore bridge loan denominated in Chinese yuan to finance the $1.2 billion transaction.
The loan was stated to have a maturity of up to 12 months and carry an interest rate of approximately 2%.
NEW TARGET OF MORE THAN 800 STORES
Following the acquisition decision, Pizza Hut's growth target in China has also been revised upward.
Yum China CEO Joey Wat said they expect to raise Pizza Hut's annual net new store opening target from over 600 to over 800 in 2027 and 2028.
Thus, with the $1.2 billion acquisition, the company aims to eliminate licensing costs and expand Pizza Hut's store network in China more rapidly.