Pizza Hut Sold in $2.7 Billion Deal as Yum Brands Reshapes Portfolio

According to ABC News, Pizza Hut, which has been in business for 68 years, is being sold by its parent company, Yum Brands, for $2.7 billion. 

The private equity firm LongRange Capital will acquire all of Pizza Hut, excluding the mainland China business. This deal will be valued at $1.5 billion. 

As for the mainland China operations, these will be sold to Yum China Holdings Inc. for about $1.2 billion. China accounts for about 19% of its sales, second only to the United States. Yum China Holdings Inc. became its own company in 2016. 

ABC News reports that Yum Brands began exploring its options for Pizza Hut as early as last November. The brand also owns KFC and Taco Bell and saw its global sales rise by 5%, but Pizza Hut's fell by 2%. 

This past February, 250 Pizza Hut locations were closed. As of the end of 2025, there were just under 20,000 Pizza Hut locations worldwide. 

Earlier this year, another pizza-related deal happened as Irth Capital submitted a $1.5 billion bid to take Papa John's private. 

Pizza Hut Faced Challenges Within Yum's Portfolio

“Pizza Hut has long been the weak link in Yum’s portfolio,” Neil Saunders, managing director of GlobalData, wrote Tuesday, per ABC. “Despite efforts to revitalize the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to.”

As mentioned, Pizza Hut is 68 years old. It was founded in 1958 in Wichita, Kansas, by two brothers who, according to ABC News, "borrowed $600 from their mother to open the store. They chose the name because their sign only had room for eight letters."

In 1977, PepsiCo acquired Pizza Hut, and in 1997, PepsiCo spun off its restaurant division as a company called Tricon Global Restaurants, which later changed its name to Yum Brands in 2002.

While Pizza Hut had a lot of success, Domino's came out in the 1980's and grew quickly. That said, overall, pizza sales in the United States have lagged since the pandemic. They grew by less than 1% in 2024 and fell by just under 1% in 2025.

Now, by selling Pizza Hut, Yum Brands can focus more on its other brands. 

New Owners See Growth Potential in the Brand

“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," said Yum CEO Chris Turner in a statement. 

As for LongRange Capital, it's based out of Connecticut and was founded in 2019 by Bob Berlin, who's helped turn around Arby's. 

“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” Berlin said in a statement.

ABC News asked LongRange if it planned to close more Pizza Hut locations, but they didn't provide further comment.