Yum Brands To Sell Pizza Hut For $2.7 Billion In Split Deal

Yum Brands has announced the sale of its struggling Pizza Hut business for a total valuation of $2.7 billion as part of a strategic restructuring move.

According to a report by Associated Press, the transaction involves two separate buyers, with private equity firm LongRange Capital acquiring Pizza Hut’s international operations (excluding mainland China) for approximately $1.5 billion, while Yum China Holdings will purchase the mainland China business for about $1.2 billion.

The decision follows Yum Brands’ earlier statement in February that it was exploring strategic options for Pizza Hut, including a potential sale and closure of underperforming outlets.

The company had already indicated plans to shut around 250 Pizza Hut restaurants in the United States due to declining performance and rising competition.

Founded in 1958 in Wichita, Kansas, Pizza Hut became one of the most recognizable global pizza brands.

PepsiCo acquired the chain in 1977, later spinning off its restaurant division in 1997, which became Yum Brands. Today, Yum also owns major global chains such as KFC and Taco Bell.

Pizza Hut has faced sustained challenges in recent years, including outdated store formats, declining same-store sales, and increased competition from both global and local pizza brands.

Yum Brands initiated a strategic review in November after continued weak performance across the chain.

According to industry analysts, Pizza Hut has been the weakest performer in Yum’s portfolio.

Experts noted that despite attempts to modernize the brand and close underperforming locations, the scale of investment required to restore growth made it difficult for Yum to continue ownership.

Yum Brands CEO Chris Turner stated that under new ownership, Pizza Hut would be better positioned for future growth, with buyers bringing strong expertise in the restaurant sector.

The company believes the divestment will allow it to focus on its stronger-performing businesses, particularly KFC and Taco Bell, which continue to deliver more stable growth.

The transaction is expected to close in the third quarter, and Yum Brands’ shares saw a slight dip in pre-market trading following the announcement.