Yum! Brands has agreed to sell Pizza Hut in a $2.7 billion deal, marking a major reshaping of its restaurant portfolio as the pizza chain continues to face pressure from weaker sales and growing competition.
The company said LongRange Capital, a private equity firm, will buy Pizza Hut’s operations outside mainland China for $1.5 billion. Yum China Holdings will separately acquire the brand’s mainland China business for $1.2 billion.
“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! Brands chief executive Chris Turner.
The sale follows a review launched by Yum! Brands in November 2025, after Pizza Hut reported several quarters of declining same-store sales in the U.S. The American market remains one of the brand’s most important territories, but the chain has struggled to hold its ground as diners look for cheaper meals, faster delivery, and more convenient ordering options.
Pizza Hut’s difficulties reflect a broader shift in the fast-food industry. Rivals such as Domino’s, Papa John’s, and Little Caesars have relied on discounts, bundle deals, and stronger delivery platforms to win over customers affected by higher living costs. Smaller regional pizza chains have also gained traction by responding more quickly to local tastes and changing consumer habits.
The rise of third-party delivery apps has added another layer of pressure. Customers now have more restaurant choices at their fingertips, making it harder for older national chains to rely on brand recognition alone.
Pizza Hut was founded in Wichita, Kansas, in 1958, and later became one of the most recognisable names in global casual dining. PepsiCo bought the chain in 1977 before spinning it off in 1997 into the business that became Yum! Brands.
“Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history,” said Turner.
The brand has also faced disruption in the UK, where Yum! Brands took control of its British operations last year after DC London Pie entered administration. Dozens of restaurants were initially closed, although a rescue deal saved around 64 sites.
Yum! Brands is expected to focus more heavily on KFC and Taco Bell once the sale is completed. Both transactions are expected to close in the third quarter of 2026, subject to regulatory approval and other customary conditions.