Yum! Brands Sells Pizza Hut for $2.7 Billion

Brands sold Pizza Hut for $2.7 billion to private-equity firm LongRange Capital and Yum China Holdings, aiming to maximize shareholder value and focus on stronger brands after years of lagging sales. Yum!

Brands announced the sale of Pizza Hut's global operations, excluding mainland China, to LongRange Capital for approximately $1.5 billion, while Yum China Holdings acquired the mainland China operations for $1.2 billion. These deals, expected to close in Q3, follow a strategic review launched last November due to Pizza Hut's consistent underperformance compared to sister brands Taco Bell and KFC.

Yum! CEO Chris Turner advocated for the sale, stating it provides "the strongest path to maximize shareholder value" and allows focus on stronger brands.

Pizza Hut's US sales have declined for two years, losing market share to Domino’s Pizza, which became the largest pizza-restaurant operator in 2017. The broader fast-food pizza category saw US sales drop 0.3% last year from 2024, according to market-research firm Technomic, impacted by cash-strapped consumers and third-party delivery apps.

Pizza Hut, with 6,300 US stores and nearly 20,000 worldwide across 108 countries, recently closed 250 underperforming US locations and attempted turnarounds with new menu items and nostalgia marketing. China, with 4,375 restaurants, remains a strong market for Pizza Hut, selling steak and pasta in addition to pizza.

Yum! expects $2.3 billion in net proceeds and $85 million in one-time expenses through 2026 tied to the sales.