Yum China Holdings Inc. (NYSE:YUMC) said Tuesday it has agreed to acquire ownership of the Pizza Hut brand in Mainland China from Yum! Brands Inc. (NYSE:YUM) for $1.2 billion in cash.

Acquisition Ends Pizza Hut Royalty Payments

Once the deal closes, expected in the third quarter of 2026, Pizza Hut China will no longer pay licensing fees to Yum! Brands. Yum China said the transaction will give it greater flexibility to expand the brand while improving restaurant economics and profitability.

“Moving from the exclusive licensee to the brand owner of Pizza Hut in Mainland China represents a transformative milestone for us, demonstrating our conviction and long-term commitment to the China market,” CEO Joey Wat said. “Becoming the brand owner will give the company greater ...