China: Yum! Brands has announced the sale of its struggling Pizza Hut business in a deal valued at $2.7 billion (£2 billion), marking a major shift for one of the world’s most recognisable restaurant chains.
Under the agreement, private equity firm LongRange Capital will acquire Pizza Hut’s operations outside mainland China for $1.5 billion. In comparison, Yum China Holdings will purchase the brand’s mainland China business for $1.2 billion.
Yum! Brands Chief Executive Officer Chris Turner said the move would position Pizza Hut for future growth under owners with extensive experience in the restaurant industry. The sale follows a prolonged period of challenges for Pizza Hut, particularly in the United States, which accounts for around 40 percent of the chain’s international sales. The company first disclosed plans to explore a potential sale in November 2025 after reporting several quarters of declining same-store sales in its key US market.
Industry analysts point to fierce competition from major rivals, including Domino’s, Papa John’s and Little Caesars, which have attracted price-conscious consumers through aggressive discounting strategies amid persistent inflationary pressures. At the same time, regional pizza chains and fast-food operators have gained market share by adapting more quickly to changing consumer preferences.
The growing popularity of third-party food delivery platforms has also intensified competition, giving consumers access to a wider range of dining options and eroding Pizza Hut’s historic market dominance.
Founded in 1958 by two brothers in Wichita, Kansas, Pizza Hut grew into one of the world’s largest pizza chains. The company was acquired by PepsiCo in 1977 before becoming part of Yum! Brands following the restaurant division’s spin-off in 1997.
Turner remarked that, “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.” The sale comes less than two years after Yum! Brands took control of Pizza Hut’s UK operations following the collapse of DC London Pie, the company that operated the chain’s dine-in restaurants in Britain. While the administration process initially led to the closure of dozens of outlets and put more than 1,200 jobs at risk, a rescue deal helped preserve the majority of the restaurants.
By divesting Pizza Hut, Yum! Brands aims to streamline its operations and focus on its remaining flagship brands, KFC and Taco Bell, which continue to drive growth across global markets. Both transactions are expected to be completed during the third quarter of 2026, subject to regulatory approvals and customary closing conditions.
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