Yum! Brands has announced the sale of Pizza Hut for $2.7 billion, with LongRange Capital acquiring operations outside China and Yum China Holdings taking over in mainland China.
Yum! Brands has confirmed its decision to sell the struggling Pizza Hut chain in a transaction valued at $2.7 billion (£2 billion).
The acquisition will see the private equity firm LongRange Capital purchase the brand's operations outside of mainland China for $1.5 billion, while Yum China Holdings is set to acquire the mainland China operations for $1.2 billion.
Chris Turner, the chief executive of Yum! Brands, stated, "Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry."
This decision follows a challenging period for Pizza Hut, a brand that has become synonymous with casual dining in the United States.
Yum! Brands first indicated it was considering a potential sale of Pizza Hut in November 2025, after experiencing several quarters of declining same-store sales in the U.S. market. The American market is crucial for Pizza Hut, comprising 40% of its total international sales.
Factors contributing to Pizza Hut's declining performance include increasing competition from revitalized chains such as Domino's, Papa John's, and Little Caesars. These competitors have aggressively slashed prices to attract cost-conscious consumers amid persistent inflation.
Additionally, mid-sized regional chains have encroached on Pizza Hut's market share, as these smaller, more agile fast-food brands have adapted more swiftly to changing consumer preferences in what has been termed the "pizza wars."
The swift expansion of third-party delivery applications has also created a saturated market with numerous alternative dining options, further eroding Pizza Hut's traditional market dominance.
Pizza Hut was established in 1958 by two brothers in Wichita, Kansas. It became a subsidiary of PepsiCo in 1977 and was later spun off into what is now known as Yum! Brands in 1997.
Turner remarked, "Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!'s history."
In October of the previous year, Yum! Brands acquired the UK operations of Pizza Hut after the firm managing the dine-in restaurants, DC London Pie, entered administration. This financial failure resulted in the closure of 68 restaurants and jeopardized over 1,200 jobs, although a rescue deal managed to save about 64 of those locations.
By divesting the rest of Pizza Hut's struggling division, Yum! Brands aims to concentrate its corporate focus and resources on its other core brands, which include KFC and Taco Bell.
The sales agreements with LongRange Capital and Yum China Holdings are anticipated to be finalized in the third quarter of 2026, pending the usual regulatory approvals.
