Yum! Brands 8-K Report, Material Agreement (Aug 7, 2026)

On August 7, 2026, Yum!

Brands, Inc. (NYSE: YUM) completed the sale of the Pizza Hut business in the People's Republic of China to Yum China Holdings, Inc. in exchange for $1.2 billion^a in cash. Yum China had previously been the exclusive licensee of those rights. In connection with the closing, YRI China Franchising, LLC entered into an Amended and Restated Master License Agreement with Yum Restaurants Consulting (Shanghai) Company Limited, a Yum China subsidiary.

The amended agreement removes all references to Pizza Hut and any future Pizza Hut royalties in the PRC. For the KFC and Taco Bell brands, it provides the licensee the opportunity to earn incentives tied to Yum China's achievement of KFC system sales growth targets over the next 12 years, and sets terms for developing long-term Taco Bell growth plans in the PRC. Yum China Holdings also executed a Guaranty in favor of YRI China Franchising, LLC, guaranteeing performance of the licensee's obligations under the amended agreement, including payment obligations.

The company's press release states that the separate sale of Pizza Hut, excluding Mainland China, to LongRange Capital remains on track to close in August 2026, subject to customary closing conditions and required regulatory approvals. The press release describes the two agreements together as selling Pizza Hut for $2.7 billion^b in the aggregate, subject to certain purchase price adjustments relating to the sale outside Mainland China. The filing also notes ongoing risk factors, including the July 2026 cyclospora outbreak and its effect on sales and recovery, the possibility that the LongRange transaction does not close as anticipated, and significant exposure to the Chinese market.