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Struggling Pizza Hut restaurant chain to be sold in two deals worth $2.7bn
The Guardian • • general
Key Points:
- Yum! Brands is selling Pizza Hut for $2.7 billion, with private equity firm LongRange Capital acquiring the chain outside mainland China for $1.5 billion, and Yum China Holdings purchasing the mainland China business for approximately $1.2 billion.
- Pizza Hut has faced challenges including outdated stores, increasing competition, and declining sales, prompting Yum! Brands to consider selling and close 250 US locations.
- Founded in 1958 and previously owned by PepsiCo, Pizza Hut has long been considered the weakest brand in Yum!’s portfolio, leading the company to focus on stronger-performing brands like KFC and Taco Bell.
- Yum! Brands expects the sale to complete in the third quarter, with the CEO expressing confidence that new ownership will better position Pizza Hut for future growth.
- The company’s stock experienced a slight decline following the announcement, reflecting market reaction to the strategic shift.
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