Pizza Hut sold to new owners in $2.7 billion deal

Key Points:

• Yum Brands is selling Pizza Hut for $2.7 billion, with private equity firm LongRange Capital acquiring the brand outside mainland China for about $1.5 billion, and Yum China Holdings purchasing the mainland China business for approximately $1.2 billion.
• Pizza Hut, founded in 1958 and once the leading global pizza chain, has struggled with declining sales and competition from faster delivery-focused chains and third-party delivery services, leading Yum Brands to close underperforming locations and seek a buyer.
• The sale allows Yum Brands to concentrate on its stronger-performing brands like KFC and Taco Bell, while LongRange Capital, known for restaurant turnarounds, aims to drive Pizza Hut's next growth phase alongside its executive team and franchisees.
• Pizza Hut's U.S. sales fell 8.2% last year, underperforming the overall pizza market, which has seen slowed growth post-pandemic, highlighting challenges in adapting to changing consumer preferences and delivery trends.
• The transaction is expected to close in the third quarter, with Yum Brands' stock rising nearly 2% following the announcement.