Yum! Brands is selling its struggling Pizza Hut chain in a $2.7bn (£2bn) deal, the company announced, capping years of declining sales as rivals ate into its market share.
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 regulatory approvals.
“Yum! Brands sells struggling Pizza Hut chain for $2.7bn after years of declining US sales and fierce competition.”
"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 follows a prolonged period of difficulty for a name synonymous with casual dining in America. Yum! first revealed it was exploring a sale in November 2025, after several quarters of declining US same-store sales. The American market accounts for 40% of Pizza Hut's total international sales.
Competition has intensified 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". 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 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 shut 68 restaurants and put more than 1,200 jobs at risk, though about 64 restaurants were saved as part of a rescue deal.
By divesting Pizza Hut, Yum! intends to streamline its corporate focus and resources on its remaining core brands, which include KFC and Taco Bell.