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Yum Brands announced on Tuesday that it is sellingPizza Hutto private equity firm LongRange Capital for $2.7 billion, completing a strategic review of the iconic pizza chain. enabling the company to focus on faster-growing brands likeTaco Bell and KFC.
The transaction would mark a significant shift for one of America's most recognizable pizza chains. underscores growing consolidation across the restaurant industry as operators navigate slowingconsumer demandand higher costs.
Under the transaction. LongRange Capital will acquire Pizza Hut's operations outside mainland China for approximately $1.5 billion, while Yum China will purchase the chain's mainland China business for roughly $1.2 billion.
The deal marks a major reshaping of one of the world's largest restaurant companies. After the sale closes, Yum will focus on KFC, Taco Bell. Habit Burger & Grill and will no longer report Pizza Hut as a separate division.
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A Pizza Hut restaurant in New York.(Michael Nagle/Bloomberg via Getty Images)
Pizza Hut generated approximately 12% of Yum's revenue in 2025 but reported declining U.S. comparable sales for 10 consecutive quarters, underscoring the difficulties the brand faced in a highly competitive pizza market.
"This transaction enables Yum! to be a more focused company," CEO Chris Turner said in a statement. "The deal will allow Yum to leverage its scale, technology and talent to drive future growth."
The Pizza Hut logo is seen on a street in Warsaw. Poland, on November 28, 2025.(Klaudia Radecka/NurPhoto via Getty Images / Getty Images)
Yum said it expects to receive about $2.3 billion in net proceeds after taxes, fees and other transaction-related adjustments. The company's board also approved an additional $4 billion share repurchase authorization. signaling that a significant portion of the proceeds could be returned to shareholders.
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In China, the deal deepens Yum China's commitment to the business. The company, which already operates KFC. Pizza Hut restaurants in the country, agreed to acquire the mainland China business while also accepting new growth incentives tied to KFC China's future sales performance.
A Pizza Hut is located on Citrus Avenue in Azusa. California, on Monday, April 1, 2024.(Robert Gauthier/Los Angeles Times via Getty Images / Getty Images)
The transaction underscores a broader trend of established restaurant companies reshaping brand portfolios in an effort to improve performance. unlock shareholder value.
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The transactions are expected to close in the third quarter, subject to regulatory approvals and customary closing conditions.
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