**Struggling Pizza Hut Chain to be Sold for $2.7 Billion**
Yum! Brands has announced the sale of its struggling Pizza Hut chain in a deal valued at $2.7 billion (£2 billion). The transaction will see private equity firm LongRange Capital acquire the brand outside of mainland China for $1.5 billion, while Yum China Holdings will take over the operations within mainland China for $1.2 billion.
Chris Turner, the CEO of Yum! Brands, expressed optimism about the future of Pizza Hut under the new ownership. He stated, "Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry." This move comes after a challenging period for Pizza Hut, which has seen a decline in performance, particularly in the competitive U.S. market.
Yum! Brands had previously indicated its intention to explore a sale of Pizza Hut in November 2025, following several quarters of declining same-store sales in the United States. The American market is crucial for Pizza Hut, accounting for approximately 40% of its total international sales. The chain has faced increasing competition from rival brands such as Domino's, Papa John's, and Little Caesars, which have gained market share by offering aggressive discounts to attract price-sensitive consumers.
Additionally, mid-sized regional chains have begun to erode Pizza Hut's market presence, adapting more swiftly to changing consumer preferences in what has been dubbed the "pizza wars." The rise of third-party delivery apps has further complicated the landscape, providing consumers with a plethora of alternative dining options and diminishing Pizza Hut's historical dominance in the sector.
Founded in 1958 by two brothers in Wichita, Kansas, Pizza Hut has become one of the most recognizable restaurant brands globally. The chain was acquired by PepsiCo in 1977 and later spun off into Yum! Brands in 1997. Turner acknowledged the brand's significance, stating, "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."
By divesting Pizza Hut, Yum! Brands aims to refocus its corporate strategy and resources on its other core brands, which include KFC and Taco Bell. The transactions with LongRange Capital and Yum China are expected to close in the third quarter of 2026, pending customary regulatory approvals.
As the fast-food industry continues to evolve, the sale of Pizza Hut marks a significant shift for Yum! Brands and highlights the challenges faced by traditional dining establishments in a rapidly changing market.