Yum! Brands has agreed to sell Pizza Hut in a dual transaction with private equity firm LongRange Capital and Yum China Holdings, valuing the global pizza chain at around $2.7bn, according to a report by CNBC.
Under the deal, LongRange Capital will acquire Pizza Hut’s non-China operations for approximately $1.5bn, while Yum China Holdings will separately purchase the brand’s mainland China business for about $1.2bn.
The transaction effectively splits Pizza Hut’s global footprint, with each buyer taking control of distinct regional operations. Yum Brands expects to receive roughly $2.3bn in net proceeds after taxes and transaction-related costs, with additional potential earn-out payments from LongRange Capital of up to $75m by 2030.
The sale concludes a strategic review initiated last year as Yum sought to address underperformance at Pizza Hut, which has struggled in key markets—particularly the US—amid shifting consumer preferences and intensifying competition from delivery-focused rivals such as Domino’s and third-party platforms like DoorDash.
Pizza Hut, founded in 1958 in Wichita, Kansas, grew rapidly through franchising and became the world’s largest pizza chain in the early 1970s. However, its market position has eroded in recent years, culminating in its loss of global leadership to competitors and ongoing pressure on sales and profitability within Yum’s broader portfolio.
Yum said the divestment will allow Pizza Hut to operate under ownership structures better aligned with its regional market dynamics and long-term strategic needs, while enabling the parent company to focus on its remaining brands, including Taco Bell and KFC.
The transaction is expected to close in the third quarter, subject to regulatory approvals, with Yum outlining additional financial impacts during its upcoming quarterly earnings call.
