Yum Brands sells Pizza Hut to private equity firm LongRange Capital and Yum China for $2.7 billion
Yum Brands on Tuesday announced it is selling Pizza Hut to private equity firm LongRange Capital for roughly $1.5 billion. The deal excludes the pizza chain's locations in mainland China; Yum China will acquire those in a separate transaction for about $1.2 billion. The deals cap off years of struggles for Pizza Hut, which has weighed on Yum's overall financial performance. In the U.S., the pizza chain has transitioned from the sit-down format and salad bars of yore to focus on delivery and carryout — far behind the curve. Rival Domino's Pizza has gobbled up market share from Pizza Hut for years; third-party delivery apps like DoorDash have further stolen sales from the chain. In November, Yum said it was exploring strategic options for Pizza Hut. On Tuesday, the company said its leadership team and board determined that selling Pizza Hut would provide "the strongest path" to maximize shareholder value and give the pizza chain an ownership structure "tailored to its distinct markets, competitive strengths and long-term priorities." Across both deals, Yum expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments and fees, excluding a possible earnout of $75 million by 2030 from LongRange. Yum also anticipates one-time expenses of about $85 million during the rest of 2026 tied to the transactions. The company's management will provide more details about the financial impact of the transactions during Yum's second-quarter conference call on July 30. Yum expects the sales to close in the third quarter, subject to regulatory approval. Brothers Dan and Frank Carney founded Pizza Hut in 1958 in Wichita, Kansas. A year later, they were franchising the concept. In 1969, Pizza Hut went public. Just two years later, it was the biggest pizza chain in the world, although it lost that title in 2017 to Domino's. The deal severs Pizza Hut's decades-long ties to Taco Bell and KFC, its sister brands in Yum's portfolio. PepsiCo bought Pizza Hut in 1977, marking the beverage giant's entry into the restaurant business. By 1986, it also owned Taco Bell and KFC. When Pepsi spun off its restaurant unit in 1997, the holding company was dubbed Tricon Global Restaurants — later renamed to Yum. At the end of 2025, Pizza Hut had nearly 20,000 locations across 108 countries and territories and reported $12.8 billion in annual system sales, according to regulatory filings from Yum. The U.S. is its biggest market, representing about 40% of its system sales, followed by China with roughly 20% of its system sales. Correction: The headline was updated to reflect that the $2.7 billion sale value includes deals with both LongRange Capital and Yum China.
