Deal splits Pizza Hut operations between private equity and Yum China, aiming to refocus on faster-growing brands like KFC and Taco Bell.
Yum Brands will sell its Pizza Hut business in two transactions totaling $2.7 billion. LongRange Capital will acquire international operations for $1.5 billion, while Yum China Holdings takes mainland China for $1.2 billion. The deals are set to close in Q3 2025.
Pizza Hut has underperformed compared to Yum’s other chains, prompting a strategic review last year. U.S. fast-food pizza sales declined 0.3% in 2024, making it the only category to shrink among the top 10 tracked by Technomic. Overall industry sales reached $31 billion, down from fourth to sixth place since 2019.
Executives stated the transactions will allow Yum to concentrate on higher-growth brands. The company’s CEO has prioritized divesting Pizza Hut since taking the role in 2024, citing stagnant U.S. sales.