Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTWill Healy, The Motley FoolThu, June 25, 2026 at 5:20 PM GMT+2 5 min readYum! Brands (NYSE: YUM) just announced that it plans to sell its Pizza Hut franchise to LongRange Capital for $2.7 billion. Investors have long known Yum! Brands as the umbrella that includes KFC, Taco Bell, and Pizza Hut. Pizza Hut's performance has generally lagged that of the other franchises, and this was likely a factor in the decision to sell it.One has to assume unloading a poorer-performing franchise should bode well for Yum! Brands shareholders. Still, one also might wonder how it compares to McDonald's (NYSE: MCD), which has built one of the more successful fast-food enterprises in existence. Let's take a closer look at both to see how the consumer discretionary stocks compare.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.At first glance, the Pizza Hut sale appears to be a positive for Yum! Brands. Its same-store sales declined in 2025 and were flat in the first quarter of 2026. This may seem disappointing considering that Pizza Hut is the second-largest of its four franchises, significantly lagging behind KFC but ahead of Taco Bell and Habit Burger.Still, one might ask whether investors should be concerned by this move. Yum! Brands has thrived on being an umbrella for several well-known franchises. Even though it was not performing as well as other franchises in the company, Pizza Hut's longtime presence has made it one of the more respected pizza brands.Moreover, Yum! Brands has appeared more prosperous recently despite Pizza Hut's performance. In Q1, it earned $2.06 billion in revenue, a 15% yearly increase. That was ahead of the 9% annual revenue surge in 2025. Also, Q1 net income rose 71% to $432 million as the company's tax burden fell.Interestingly, in 2025, the $1.56 billion it earned in net income rose 5% yearly on a rise in its tax burden. That has helped support its dividend of $3.00 per share, a payout that has increased for nine straight years. Also, the 1.9% dividend yield is significantly above the S&P 500 average of 1.1%.Nonetheless, Yum! stock has risen by around 10% over the past year. Amid that increase, it maintained a P/E ratio of around 24, just below its average of 26 over the last five years. If you believe spinning off Pizza Hut is a wise move, such numbers might persuade you to take a chance on Yum! Brands stock.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info