Pizza Hut has been sold for $2.7 billion in a deal that will divide the global restaurant brand between two new owners. Yum Brands, the parent company, is selling the business due to slowing sales and increased competition.
Private equity firm LongRange Capital will acquire most of Pizza Hut's global operations for $1.5 billion, while Yum China Holdings will buy the mainland China business for $1.2 billion. The transactions are expected to close in the third quarter of 2026, subject to regulatory approvals.
WHY WAS PIZZA HUT SOLD?
The sale comes amid challenges faced by restaurant groups, including weaker consumer spending, declining sales in some sectors, and rising costs. Yum Brands, which also owns KFC and Taco Bell, said the deal will allow it to focus on its faster-growing brands.
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Chief executive Chris Turner stated that the transactions will enable Yum to be a more focused company. He added that under LongRange and Yum China, Pizza Hut will be well positioned for future growth with owners who have deep expertise in the restaurant industry.
In the US, Pizza Hut is the second-largest pizza operator after Domino's, with about 6,300 stores and $5.1 billion in domestic sales last year. However, its US sales have declined for about two years, and Yum plans to close around 250 underperforming US outlets this year.
DECADES-OLD JOURNEY
Pizza Hut was founded in 1958 by brothers Frank and Dan Carney, who borrowed $600 from their mother to open the first outlet in Wichita, Kansas. The chain initially focused on takeaways due to limited space but later expanded to include dine-in services.
PepsiCo acquired Pizza Hut in 1977, adding it to a portfolio that included KFC and Taco Bell. These restaurant businesses were spun off in 1997 to form Tricon Global Restaurants, which became Yum Brands in 2002. Pizza Hut expanded globally, including in India, where it introduced many diners to Western-style casual dining.
CHANGING LANDSCAPE
The sale is part of a trend of restaurant deals as pizza chains face a challenging market. Pizza sales growth has lagged behind the wider fast-food industry for several years, with pricing pressures squeezing margins. Other pizza chains like Papa John's and the parent company of Papa Murphy's are also exploring sales or strategic options.
Inflation, higher commodity costs, and tighter household budgets have affected the sector, while delivery-focused rivals and local brands have increased competition. The use of GLP-1 weight-loss drugs has also been noted as a factor influencing changing eating habits.
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Private equity firms have been active in buying older restaurant chains needing fresh capital or operational changes. Since 2010, buyout firms have spent about $64 billion on US restaurant deals, representing roughly 64% of sector transactions. Recent acquisitions include Subway, Dunkin', and Jersey Mike's. Some firms have grouped multiple brands to reduce overheads and share back-office functions, as seen with Roark Capital Group's Inspire Brands. Others have invested to help US chains expand internationally.
LongRange Capital expressed confidence in Pizza Hut despite the challenging environment. The firm's portfolio includes 24 Hour Fitness and Batesville. Bob Berlin, founder and managing partner at LongRange, described Pizza Hut as a beloved global brand with a rich heritage and loyal customers.
Published on: Jun 17, 2026 11:23 AM IST
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