Yum Brands Sells Pizza Hut for $2.7 Billion to LongRange Capital and Yum China

Yum Brands announced Tuesday that it will sell Pizza Hut, its struggling 68-year-old restaurant chain, for approximately $2.7 billion in a deal split between two buyers. Private equity firm LongRange Capital will acquire Pizza Hut's business outside mainland China for about $1.5 billion, while Yum China Holdings Inc. will purchase the China operations for approximately $1.2 billion. The sale marks a significant exit for Yum Brands from a brand that has underperformed across its portfolio.

Pizza Hut has faced mounting challenges as the restaurant industry shifted toward delivery and carryout models. The chain, which operated 19,974 restaurants worldwide at year-end, has been saddled with large dine-in facilities that became increasingly uncompetitive as competitors like Domino's built delivery-first business models. The rise of third-party delivery platforms such as DoorDash and Uber Eats further eroded Pizza Hut's market position by offering consumers access to diverse cuisines beyond pizza. Last year, Yum Brands' global sales grew 5 percent while Pizza Hut's sales fell 2 percent, and the chain's U.S. sales declined 8.2 percent in 2024 according to Technomic, a restaurant consulting firm. In February, Yum Brands announced plans to close 250 U.S. locations as part of its effort to stem losses.

LongRange Capital, a Connecticut-based firm founded in 2019 by Bob Berlin, brings significant restaurant industry experience to the acquisition. Berlin previously led a turnaround at Arby's through private equity investments at The Baupost Group. Yum China Holdings, which spun off as an independent company in 2016, will maintain Pizza Hut's presence in mainland China, which represents the chain's second-largest market outside the United States and accounts for 19 percent of sales. Yum Brands CEO Chris Turner stated that the sale allows the parent company to focus on stronger-performing brands including KFC and Taco Bell, while positioning Pizza Hut for future growth under new ownership with deep restaurant expertise.

Pizza Hut was founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mother and chose the name because their storefront sign had room for only eight letters. The chain achieved peak prominence by 1971 when it became the world's top pizza chain by sales, driven in part by its iconic red roof that debuted in 1969. PepsiCo acquired the company in 1977, then spun off its restaurant division in 1997 to create Yum Brands. However, the company never successfully adapted to the industry's pivot toward delivery and digital ordering, particularly after COVID-19 accelerated pandemic-driven demand in 2020 when Pizza Hut nonetheless closed 300 U.S. restaurants. Industry data shows that U.S. pizza sales have slowed considerably since the pandemic, growing less than 1 percent in 2024 and declining less than 1 percent in 2025, putting additional pressure on legacy chains. Yum Brands expects the sale to close in the third quarter, and the company's stock rose nearly 2 percent on the announcement.