• Yum! Brands is selling Pizza Hut for $2.7 billion to enhance focus on stronger brands.
• LongRange Capital acquires Pizza Hut outside mainland China for $1.5 billion.
• Yum China purchases the brand's China operations for $1.2 billion, planning rapid growth.
• The deal follows ongoing struggles for Pizza Hut amid rising competition.
• Both transactions are expected to close in the third quarter of 2026.

Yum! Brands announced the sale of its struggling Pizza Hut chain in a deal valued at $2.7 billion. This transaction will see private equity firm LongRange Capital take control of Pizza Hut operations outside of mainland China for about $1.5 billion, while Yum China Holdings will purchase the brand’s mainland Chinese operations for approximately $1.2 billion. Yum! Brands CEO Chris Turner expressed optimism about the future growth of Pizza Hut under the new owners, noting that they possess "deep expertise in the restaurant industry," according to CBS News and Los Angeles Times.

This strategic sale comes as Pizza Hut has faced declining sales and increased competition from chains like Domino's and Papa John's. In response to diminishing comparable store sales, Yum! Brands had begun exploring the sale of Pizza Hut as early as November 2025. The company announced plans to close up to 250 U.S. locations due to these challenges, according to SCMP and BBC.

Once the sale is finalized, Yum China will transition from being Pizza Hut's exclusive licensee in mainland China to full ownership of the brand. Yum China's CEO Joey Wat highlighted that this change allows for transformative growth and greater flexibility in expanding the Pizza Hut network, with a target of over 6,000 stores by 2028. This move is expected to optimize operations and eliminate licensing fees, according to India Times.

Yum! Brands anticipates approximately $2.3 billion in net proceeds from the transactions after taxes and expenses. The company plans to use these funds to reinvest in its stronger brands, such as KFC and Taco Bell, underscoring a shift in focus as it divests from struggling ventures like Pizza Hut, according to CBS News, Los Angeles Times, and BBC.