HKG:9987

Yum China to Take Over Pizza Hut Brand in Mainland China

Yum China Holdings (HKG:9987) said it agreed to take over the Pizza Hut brand in mainland China from its franchisor Yum! Brands, according to a Tuesday filing with the Hong Kong bourse.Yum China said it would pay $1.2 billion in cash to acquire the Pizza Hut business, using a combination of internal resources and debt to fund the transaction.Yum! Brands had been in talks with LongRange Capital to sell the lagging pizza chain and entered separate agreements with the private equity firm and Yum China to sell the business.LongRange Capital will acquire the portion of Pizza Hut for $1.5 billion.Yum! Brands has been conducting a strategic review of Pizza Hut amid stagnant sales. The pizza chain contributed about 12% to Yum!'s revenue in 2025, down from more than 18% in 2019, Bloomberg reported citing its own data.Despite struggling internationally, Pizza Hut is the largest casual dining restaurant brand in China, reporting segment revenue of $2.3 billion in 2025.Shares of Yum China jumped nearly 9% in pre-market trade.

Market Chatter: Yum! Brands Said in Talks to Sell Pizza Hut Chain to LongRange Capital

Yum! Brands, which licenses its KFC, Pizza Hut and Taco Bell brands to Yum China Holdings (HKG:9987) in mainland China, reportedly entered exclusive talks with LongRange Capital to sell its lagging Pizza Hut chain.Bloomberg News reported May 29, citing people familiar with the matter, that both sides are advancing discussions and are in an exclusivity period, but that a deal is not guaranteed.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Yum China Plans $512 Million Share Buybacks in US, Hong Kong

Yum China (HKG:9987) entered into share repurchase agreements for about $512 million of buybacks in the second half of 2026, according to a Tuesday Hong Kong bourse filing.Shares of the restaurant operator were up over 1% in Wednesday morning trade.The company will buy back about $384 million worth of shares in the U.S. and nearly HK$1 billion in Hong Kong.The buybacks are part of a broader plan to return $1.5 billion to shareholders through dividends and share repurchases in 2026.Repurchase programs are expected to begin on July 1 and continue through Dec. 31, unless completed earlier.

Nomura Adjusts Yum China Holdings' Price Target to HK$464 From HK$459, Keeps at Buy

Jefferies Adjusts Yum China Holdings' Price Target to HK$505.50 from HK$490.20, Keeps at Buy

Yum China's Net Income Rises 6% in Q1

Yum China (HKG:9987) posted net income of $309 million for the first quarter, up 6% from $292 million a year earlier, according to a Wednesday Hong Kong bourse filing.Earnings per share came in at $0.87 from $0.77 a year earlier.Revenue increased 10% to $3.27 billion from $2.98 billion in the prior-year period.The restaurant operator said it targets a total of over 20,000 stores in 2026, with more than 1,900 net new stores and a 40% to 50% franchise mix for new KFC and Pizza Hut outlets.Capital expenditure is expected to be about $600 million to $700 million, with $1.5 billion planned for shareholder returns.