Yum Brands, the parent company of Pizza Hut, KFC, and Taco Bell, has announced the sale of the iconic pizza chain in a deal worth $2.7 billion. The move marks the end of Yum Brands’ ownership of Pizza Hut after years of declining sales and increasing competition in the global fast-food market.
Under the agreement, private equity firm LongRange Capital will acquire the operations of Pizza Hut outside mainland China for approximately $1.5 billion. Separately, Yum China Holdings will purchase the Pizza Hut business in mainland China for around $1.2 billion. The transactions are expected to be completed during the third quarter of 2026, subject to regulatory approvals and customary closing conditions.
Yum Brands launched a strategic review of Pizza Hut in late 2025 as the chain continued to struggle with falling sales, changing consumer preferences and stronger competition from rivals. The company had also announced plans earlier this year to close around 250 underperforming restaurants in the United States as part of efforts to improve profitability.
Pizza Hut, which was founded in Wichita, Kansas, in 1958, was acquired by PepsiCo in 1977 before becoming part of Yum Brands when the restaurant division was spun off in 1997. Despite being one of the most recognisable pizza brands worldwide, the chain has faced challenges adapting to the evolving customer habits and the rise of digitally focused competitors.
Yum Brands CEO Chris Turner said Pizza Hut would be better positioned for future growth under its new owners, citing LongRange Capital’s restaurant industry expertise and strong track record of Yum China in the Chinese market. The company plans to focus more heavily on its other major brands, including KFC and Taco Bell, while using proceeds from the sale to support future growth initiatives.
The deal represents one of the biggest restaurant-sector transactions of 2026 and showcases a major shift for a brand which once dominated the global pizza industry.
Sources: BBC | The Guardian
