Yum Brands sells Pizza Hut in $2.7B deal

Yum Brands announced Tuesday it is selling Pizza Hut in a $2.7 billion deal, splitting ownership between U.S. private equity firm LongRange Capital and Yum China. The transaction excludes Pizza Hut's mainland China locations, which Yum China will acquire for $1.2 billion. LongRange Capital will purchase the rest of the chain for $1.5 billion. The sale follows years of declining performance for Pizza Hut, which has struggled to compete with rivals like Domino's and third-party delivery apps. Yum Brands began exploring strategic options for Pizza Hut in November 2025. The company expects to receive about $2.3 billion in net proceeds after taxes, fees, and closing adjustments, with a possible earn-out of $75 million by 2030. The deals are expected to close in the third quarter, subject to regulatory approval. Yum Brands will incur one-time expenses of about $85 million in the remainder of 2026 related to the transactions. Pizza Hut was founded in 1958 and became the world's largest pizza chain by 1971. It was acquired by PepsiCo in 1977 and later spun off into Yum Brands in 1997. The sale severs Pizza Hut's decades-long ties to Yum Brands' other chains, KFC and Taco Bell. Analysts note that Pizza Hut has been the weakest link in Yum Brands' portfolio, with declining sales and market share losses to competitors. The chain has closed 250 U.S. locations in recent years, reflecting its struggles. Yum Brands CEO Chris Turner stated that the sale will position Pizza Hut for future growth under new ownership with deep restaurant industry expertise.