Yum! Brands is selling its struggling Pizza Hut chain in a deal worth $2.7bn (£2bn), the company has announced, marking the end of an era for the once-dominant casual dining name.
Private equity firm LongRange Capital will acquire the brand outside mainland China for $1.5bn, while Yum China Holdings will buy the mainland China operations for $1.2bn. The transactions are expected to close in the third quarter of 2026, subject to customary regulatory approvals.
“Yum! Brands sells Pizza Hut for $2.7bn after years of decline from pizza wars and delivery apps.”
“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 decision comes after a prolonged period of difficulty for a chain synonymous with casual dining in America. Yum! Brands first revealed it was exploring a potential sale in November 2025, following several quarters of declining US same-store sales. The American market is critical for the chain, making up 40% of its total international sales.
That drop has been driven by intensifying competition from revival chains such as Domino’s, Papa John’s and Little Caesars. At a time when inflation remains sticky, these rivals have aggressively discounted their offerings to win over price-sensitive consumers. Mid-sized regional chains have also chipped away at the market, adapting faster to changing habits in the so-called “pizza wars”.
At the same time, the rapid rise of third-party delivery apps has flooded the market with alternative options, diluting Pizza Hut’s historic dominance.
Pizza Hut was founded in 1958 by two brothers in Wichita, Kansas. It was bought by PepsiCo in 1977 and then spun off into what became Yum! Brands in 1997.
“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.
Yum! bought Pizza Hut’s UK operations last October after DC London Pie, the firm running the dine-in restaurants, fell into administration. The financial collapse originally shut 68 restaurants and put more than 1,200 jobs at risk, but about 64 were saved as part of a rescue deal.
By divesting the rest of the struggling division, Yum! Brands intends to streamline its focus on remaining core brands, including KFC and Taco Bell.