US restaurant group Yum Brands is in exclusive negotiations to sell its Pizza Hut business to private equity firm LongRange Capital, according to a report by Reuters citing an unnamed source familiar with the discussions.
The talks are reported to be progressing toward a potential agreement within weeks, although no deal has been finalised and completion remains uncertain.
The proposed transaction would mark a further step in Yum Brands’ strategic review of Pizza Hut, a unit that has lagged its peer brands amid sustained operational headwinds and weakening consumer demand.
Pizza Hut, which contributes roughly 12% of Yum Brands’ revenue, has recorded 10 consecutive quarters of declining US comparable sales, in contrast to continued growth at sister chains Taco Bell and KFC. The group began exploring strategic options for the business last year as performance pressures intensified.
The potential sale comes as private equity firms increasingly target carve-outs and turnarounds in the quick-service restaurant sector, where inflationary pressures, shifting consumer behaviour and rising input costs have weighed on profitability and public-market valuations.
Industry-wide, investors have been attracted to the opportunity to restructure legacy restaurant brands through operational simplification, re-franchising strategies and cost optimisation—approaches often aligned with sponsor-led buyout playbooks.
Other bidders previously reported to have shown interest in Pizza Hut include Sycamore Partners and Apollo Global Management, alongside LongRange Capital.
