loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Yum! Brands has announced the sale of its Pizza Hut business

ICICIdirect Research 17 Jun 2026 DISCLAIMER

News: Yum! Brands has announced the sale of its Pizza Hut business for USD 2.7bn (~Rs.25,500cr) amid challenges from intense competition and cautious consumer spending in the fast-food industry. Pizza Hut business in Mainland China will be purchased by Yum China Holdings Inc. for approximately USD 1.2bn (~Rs.11,300cr) while the remaining business will be acquired by private equity firm LongRange Capital for  USD 1.5bn ( ~₹14,170cr). The deal is aimed at streamlining operations as Pizza Hut navigates challenging consumer environment with large shift hapoening to healthy options. Pizza Hut is operated by Devyani International and Sapphire Foods under agreement with Yum brands in India. Both hese entities will merged their operations under Devyani International and will be operating close to 3000 Pizza Hut stores post merger

View: With Yum brands selling Pizza Hut brand, we believe both these companies have to sign new agreement with new owner i.e. LongRange Capital. Terms will remain the same or there might be revised term sheet. Pizza Hut has been drag on the performance of Devyani International and Saphirre for last few years. There possibility that both companies would not like to extend their association with Pizza Hut and would like to continue to profitable brands KFC and Taco Bell. We need to keenly monitor the further course of action. However sentimentally this event looks to be positive for Devyani International and Saphire Foods. Further, Deyani International and Sapphire Foods have received approval for merger (Merger of Sapphire Foods into Devyani International) from BSE and NSE on June 16th 2026 wherein 177 shares of Devyani International will be issued for 100 shares of Sapphire Foods share held

Impact: Neutral

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere