The struggling Pizza Hut chain is to be sold for $2.7bn (£2bn), its parent company Yum! Brands has announced — ending a prolonged battle against rivals who have eaten into its slice of the market.
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. Both deals are expected to close in the third quarter of 2026.
“Pizza Hut sold for $2.7bn after struggling with dated stores and fierce competition from Domino's and rivals.”
The sale comes after several quarters of declining same-store sales in the US, a market that accounts for 40% of the chain's international revenue. Yum! Brands first revealed it was exploring a sale in November 2025, having already shut 250 US restaurants as it struggled with outdated stores.
Intensifying competition has been the chief culprit. Rivals including Domino's, Papa John's and Little Caesars have aggressively discounted their offerings to win over price-sensitive consumers, while smaller regional chains have adapted faster to changing habits. The rapid rise of third-party delivery apps has also flooded the market with alternatives, diluting Pizza Hut's historic dominance.
"Pizza Hut has long been the weak link in Yum's portfolio," said Neil Saunders, managing director of GlobalData. "Despite efforts to revitalize the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to."
Yum! Brands CEO Chris Turner struck a more optimistic note: "Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry."
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.
The chain's UK operations have also been turbulent. Yum! bought Pizza Hut's UK arm last October after DC London Pie, the firm running the dine-in restaurants, fell into administration. That collapse originally shut 68 restaurants and put more than 1,200 jobs at risk, though about 64 were saved as part of a rescue deal.
By offloading Pizza Hut, Yum! Brands intends to focus on its remaining core brands — KFC and Taco Bell. The company's stock slipped slightly before the market opened on Tuesday.