Yum! Brands is offloading Pizza Hut for $2.7bn after years of market-share losses to fast-casual pizza rivals and delivery-app competitors. YUM reported $8.2B in revenue (+8.8% YoY) with 19% net margins and $5.55 diluted EPS, suggesting the core KFC and Taco Bell engines remain healthy even as Pizza Hut lagged. The $2.7bn price tag will be measured against what the market believes Pizza Hut contributes to system-level royalty flows.

The key second-order question is whether YUM's remaining franchise portfolio — now leaner and more focused — commands a higher multiple, or whether the divestiture signals that franchise fee growth was already stalling at the brand level. Watch for management commentary on capital return (buybacks/dividends) from proceeds, and any re-rating of consensus price targets post-announcement.