Yum Brands announced on Tuesday that it has entered into definitive agreements to sell Pizza Hut for $2.7 billion in a two-part transaction, marking the end of the parent company’s ownership of the struggling pizza chain after decades of declining sales.
Under the deal, private equity firm LongRange Capital will acquire Pizza Hut excluding mainland China for approximately $1.5 billion, with an additional $75 million earnout opportunity by 2030. Separately, Yum China Holdings will acquire Pizza Hut in mainland China for approximately $1.2 billion.
The sale comes after Yum Brands launched a strategic review of Pizza Hut in November 2025, responding to a prolonged sales slump. Pizza Hut’s U.S. same-store sales declined 7 percent in 2025 and fell another 3 percent in the fourth quarter, marking the eighth consecutive quarter of declines, according to reporting by Business Insider and CNN.
Pizza Hut has lost significant market share to competitors in recent years. According to Technomic, a food service consulting company, Pizza Hut controlled 15.5 percent of U.S. pizza chain sales as of late 2025, down from 19.4 percent in 2019, per NBC News. The chain was also forced to close approximately 250 underperforming U.S. locations in the first half of 2026, representing about 3 percent of its domestic footprint.
“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent,” said Chris Turner, Chief Executive Officer of Yum! Brands, in a statement. “Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry.”
Yum Brands expects to receive approximately $2.3 billion in net proceeds after taxes, closing adjustments and transaction-contingent fees, excluding the earnout. The company also expects to incur approximately $85 million in one-time expenses during the remainder of 2026 to complete the separation. Both transactions are expected to close in the third quarter of 2026, subject to customary closing conditions and regulatory approvals.
The sale reflects a broader trend of private equity acquiring struggling restaurant chains. In 2025, private equity firms acquired or took controlling stakes in multiple restaurant concepts, including Dave’s Hot Chicken, which sold a majority stake to Roark Capital for over $1 billion, according to Bennett Thrasher. Restaurant valuations have remained low following a challenging 2025, making established chains with recognized brands attractive targets for restructuring.
Concurrent with approval of the Pizza Hut sale, Yum Brands’ board authorized an incremental $4 billion share repurchase program, signaling confidence in the company’s ability to return capital to shareholders after the transaction closes. Yum Brands will continue to provide its proprietary Byte technology platform and certain corporate services to Pizza Hut Ex-China under a transition services agreement during the separation.
Sources
- Yum! Brands Press Release — Official announcement of the two-part sale agreement, transaction terms, and expected closing timeline.
- Reuters — Reporting on the $2.7 billion sale and the two-part deal structure.
- CNBC — Confirmation of LongRange Capital acquiring Pizza Hut Ex-China for $1.5 billion and Yum China acquiring mainland China operations for $1.2 billion.
- Business Insider — Documentation of Pizza Hut’s same-store sales declines and eight consecutive quarters of negative performance.
- CNN — Reporting on Pizza Hut store closures and Q4 2025 same-store sales decline of 3 percent.
- NBC News — Reporting on Pizza Hut’s market share decline from 19.4 percent in 2019 to 15.5 percent in 2025, citing Technomic data.
- Bennett Thrasher — Context on private equity M&A trends in the restaurant sector, including Dave’s Hot Chicken sale to Roark Capital.
