Yum China Holdings announced that it has entered into a definitive agreement to take full ownership of the Pizza Hut brand on the Chinese mainland in a $1.2 billion deal, a strategic shift that will eliminate ongoing royalty payments to Yum Brands.

The move gives Yum China direct control of one of its most profitable and fast-growing restaurant businesses. The transaction is expected to improve store economics and accelerate expansion, as Yum China pushes to deepen its dominance in the country's casual dining market.

Pizza Hut is currently the largest casual dining restaurant brand in China under the Yum China portfolio. In 2025, the business generated $2.3 billion in segment revenue and $183 million in operating profit. In the first quarter, it posted its 13th consecutive quarter of same-store transaction growth and its eighth straight quarter of margin and operating profit expansion.

Yum China, which operates KFC, Pizza Hut and Taco Bell on the Chinese mainland, said it plans to expand the Pizza Hut footprint to more than 6,000 restaurants by 2028, up from 4,375 locations across more than 1,100 cities and counties today.

The company is also targeting a doubling of Pizza Hut operating profit by 2029 in comparison to 2024 levels.