Yum! Brands announced Tuesday it is selling its struggling Pizza Hut division in a deal valued at $2.7bn (£2bn). The fast-food company said LongRange Capital, a private equity firm, will acquire Pizza Hut outside mainland China for $1.5bn, and Yum China Holdings will purchase the mainland China operations for $1.2bn.
“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry,” Yum! Brands chief executive Chris Turner said in a statement.
Yum! Brands first revealed it was exploring a potential sale in November 2025, following several quarters of declining U.S. same-store sales. The American market is especially important for Pizza Hut, representing 40% of its total international sales.
The chain’s declining performance has been driven by intensified competition from so-called revival chains, including Domino’s, Papa John’s, and Little Caesars. With inflation remaining elevated, those rivals have aggressively discounted their offerings to attract price-sensitive consumers. Mid-sized regional chains have also cut into Pizza Hut’s market share, adapting faster to shifting consumer habits in what analysts describe as the “pizza wars.” Meanwhile, third-party delivery apps have flooded the market with alternative options, eroding Pizza Hut’s historic dominance.
Pizza Hut was founded in 1958 by two brothers in Wichita, Kansas. It was bought by PepsiCo in 1977 and then spun off into what became Yum! Brands in 1997.
“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,” Turner said.
Yum! Brands will continue to operate its UK-based Pizza Hut restaurants rather than transferring them to private equity. It bought the UK operations in October 2025 after DC London Pie, the firm running the dine-in restaurants, fell into administration. That financial collapse originally closed 68 restaurants and put more than 1,200 jobs at risk, though about 64 restaurants were saved as part of a rescue deal.
By divesting the rest of the struggling division, Yum! Brands intends to streamline its corporate focus on its remaining core brands, which include KFC and Taco Bell. The transactions with LongRange Capital and Yum China are both expected to close in the third quarter of 2026, subject to customary regulatory approvals.