Yum! Brands announced last week that it will sell Pizza Hut in two transactions worth a combined $2.7 billion. The chain’s business outside China will go to private equity firm LongRange Capital for about $1.5 billion, while the China business will be sold to Yum China for about $1.2 billion. The deals are expected to close in the third quarter of 2026, pending regulatory approval.
The sale follows years of decline for Pizza Hut, both against Domino’s and within Yum’s own portfolio, which also includes KFC and Taco Bell. In Yum’s first-quarter 2026 results, Pizza Hut posted operating profit of just $64 million, far below KFC’s $383 million and Taco Bell’s $281 million. The turning point came in 2017, when Domino’s overtook Pizza Hut in global sales, $12.2 billion versus $12.03 billion, and became the world’s leading pizza chain.
Yum then launched a U.S. turnaround plan for Pizza Hut, investing about $130 million over two years. The plan emphasized delivery, digital development, closing weak stores, faster service and deeper partnerships with delivery platforms in the U.S. and abroad. But the effort did not restore the brand’s former standing, and the chain has continued to face falling U.S. sales, store closures and high operating costs while Domino’s kept leading the category.
Marketing and strategy expert Avi Zeitan said Pizza Hut was built around a distinctive taste, a large-store model and a family dine-in experience, but did not adapt quickly enough as consumer habits changed. He said rivals became technology companies that happen to sell pizza, while Pizza Hut remained a heavier store-based chain with weaker delivery capabilities. He also said the shift to digital ordering and delivery accelerated after the coronavirus pandemic.
In Israel, Pizza Hut has been operated since 2008 by Tabasco Holdings, owned by Udi Shamai and Niv Silberstein, after buying the franchise from Dor Alon. The chain has about 100 branches, some company-owned and others franchised. It is the largest pizza chain in Israel by number of outlets, ahead of Domino’s, which has 40 to 50 branches, but Domino’s leads in delivery and digital. According to Coface BDI, the Israeli pizza market was worth about 3.8 billion shekels at the start of 2026, up 5% from 2025, and includes about 2,650 branches.