Yum Brands said it will sell Pizza Hut for $2.7 billion as the chain faces tough competition and a sharp drop in consumer spending, which has hurt demand. The deal splits the business into two parts, Pizza Hut’s China operations will be sold to Yum China Holdings for $1.2 billion, while the rest of the global brand will go to private equity firm LongRange Capital for $1.5 billion.
Pizza Hut’s troubles have been compounded by higher ingredient costs, inflation, weak pizza demand in the U.S., and the growing popularity of GLP-1 weight-loss drugs, which analysts say are pushing some consumers toward healthier eating and away from junk food. After several straight quarters of falling sales, Yum said last year it was reviewing strategic options for the brand, and in May it entered exclusive talks with LongRange.
Sam North, a market analyst at eToro, said LongRange is buying a globally recognized brand that needs clearer focus, while Yum China’s move gives local operators better control of a key market. He added that, although the price is not especially strong for such a famous brand, the sale removes a long-term burden and gives Pizza Hut a real chance at a turnaround. Yum Brands CEO Chris Turner said the transactions will make the company more focused.
Pizza Hut was acquired by PepsiCo in 1977, then spun off in 1997 alongside KFC and Taco Bell to create the company that became Yum Brands in 2002. After the sale, Yum will be left with KFC and Taco Bell. The company expects the transaction to close in the third quarter of 2026, subject to regulatory approval. In China, Yum China plans to grow Pizza Hut to more than 6,000 locations by 2028, while the two companies also agreed on cash incentives tied to KFC growth and cooperation on Taco Bell expansion. Yum China shares in U.S. trading ended flat after early losses, while Yum Brands rose about 2% after also announcing a $4 billion share buyback.
