Yum Brands is to sell the struggling Pizza Hut brand in a $2.7bn (£2bn) deal.
The restaurant chain will be sold as part of two separate transactions, with Pizza Hut, excluding mainland China, being sold to private equity firm LongRange Capital for $1.5bn (£1.1bn). Pizza Hut China will be sold to Yum China for $1.2bn (£894.7m).
Following a review of strategic options for the pizza chain, Yum said a sale provided the “strongest path to maximise shareholder value while providing Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR experience”.
Both transactions are expected to close in the third quarter of 2026.
Yum Brands CEO Chris Turner said the sale would allow Yum, which also owns KFC and Taco Bell, to be a “more focused company”.
“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry.
“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. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter,” he added.
The sale comes as Pizza Hut has suffered declining profits and sales as of late.
For the second quarter to 30 June 2025, the fast food chain suffered a 15% fall in profit to $80m (£60.2m) as system sales were down 1%. The company attributed the decline to growing competition in the sector and weak consumer spending.
Its most recent financial update, for the first quarter to 31 March 2026, saw operating profit decline further to $64m (£47.5m).
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