Recently, Yum China Holding Inc. announced that it will acquire the ownership of the Pizza Hut brand in mainland China from Yum!Brands Inc. for a cash consideration of USD 1.2 billion. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals.
Upon completion of the transaction, Yum China will transition from the exclusive franchisee of the Pizza Hut brand in mainland China to the brand owner, further strengthening its brand autonomy, operational flexibility and long-term strategic value in China’s catering market.
Yum China is one of the largest restaurant companies in China by scale of operations. As one of its important core brands, Pizza Hut has been deeply rooted in the mainland China market for many years, with an extensive store network, a mature operating system and a strong consumer base. According to available data, as of the end of the first quarter of this year, Pizza Hut's operating network covered 1,100 cities and towns, with a total of 4,375 restaurants. Yum China plans to further expand Pizza Hut's footprint, with a target of increasing the number of stores to over 6,000 by 2028.
Fangda acted as PRC legal counsel to Yum China in this transaction. Leveraging its extensive experience in cross-border M&A, antitrust filings, consumer sectors, and complex transactions, Fangda provided legal support on PRC legal matters relating to the transaction. The team was led by IP partner Claudia YUN, Antitrust partner Michael HAN, corporate partners TAN Peng and Jeffrey DING, and Banking partner Rock WANG.
Grainne ZHANG also contributed to this transaction.