Yum Brands announced on Tuesday its decision to sell the Pizza Hut chain for $2.7 billion, as the unit grapples with intense competition in the fast-food market and cautious consumer spending. The company stated that Pizza Hut in Mainland China will be acquired by Yum China for $1.2 billion, while the remaining business will be purchased by private equity firm LongRange Capital for $1.5 billion.
Market Pressures and Consumer Trends
Rising inflation and elevated commodity costs have weighed on US pizza giants, already facing sustained demand weakness. The growing adoption of GLP-1 weight-loss drugs has encouraged consumers to choose healthier foods, further impacting sales. Last year, Yum Brands revealed it was exploring strategic options for the chain after several quarters of sales decline.
In 2025, Pizza Hut accounted for approximately 12% of Yum's total revenue. The sale follows Yum entering exclusive talks with LongRange in May, as the unit also lagged behind Yum's other fast-casual dining brands, such as Taco Bell.
CEO Comments and Historical Context
"These transactions enable Yum! to be a more focused company," said Yum Brands CEO Chris Turner. Pizza Hut was originally acquired by PepsiCo in 1977 and was spun off in 1997 alongside KFC and Taco Bell to form a restaurant company that later took the name Yum Brands in 2002.
Shares of Yum, which will now retain only its Taco Bell and KFC chains, rose approximately 1% in premarket trading. Yum China Holdings, a Shanghai-based spin-off of Yum Brands, owns and franchises over 18,000 stores in the country, including roughly 13,000 locations for KFC.
Reuters reported in April that LongRange, Sycamore Partners, and Apollo Global Management, among others, were competing for Pizza Hut.
