Pizza Hut Acquired by LongRange Capital and Yum China in $2.7 Billion Deal
Yum! Brands has finalized the sale of Pizza Hut for a total of $2.7 billion. The transaction splits ownership, with private equity firm LongRange Capital acquiring Pizza Hut's operations outside mainland China for approximately $1.5 billion. Concurrently, Yum China Holdings will purchase the chain's business in mainland China for about $1.2 billion. This strategic divestment allows Yum! Brands to concentrate on its remaining core brands, including KFC, Taco Bell, and Habit Burger & Grill.
Yum! Brands announced Tuesday it has finalized the sale of Pizza Hut in a $2.7 billion deal. The iconic pizza chain will now be jointly owned by two entities: private equity firm LongRange Capital and Yum China Holdings.
LongRange Capital will acquire Pizza Hut's global operations, excluding mainland China, for an estimated $1.5 billion. Yum China Holdings will take over the brand's business within mainland China for approximately $1.2 billion.
The sale follows a strategic review by Yum! Brands, which began last year, prompted by declining sales and increased market competition. Pizza Hut had reported eight consecutive quarters of same-store sales declines prior to the review. Yum CEO Chris Turner had previously suggested that "additional action" was needed for Pizza Hut, potentially "better executed outside Yum! Brands."
For Yum! Brands, the divestiture allows for a sharpened focus on its other key restaurant brands: KFC, Taco Bell, and Habit Burger & Grill. The company expects to receive approximately $2.3 billion in net proceeds from the two transactions after taxes, closing adjustments, and transaction-related fees, not including a potential $75 million earn-out by 2030. Yum! Brands also anticipates approximately $85 million in one-time costs to complete the separation.
LongRange Capital has positioned itself as a hands-on operator and has stated plans to invest in Pizza Hut's growth, aiming to build on its franchise system and global footprint. Yum! Brands expressed confidence that Pizza Hut would be "well positioned for future growth" under the new ownership structure.
Pizza Hut has faced various challenges, including plans by Yum! to close 250 underperforming locations during the first half of 2026. In May, a Pizza Hut franchisee also filed a lawsuit against the chain, alleging operational disruptions and customer service problems linked to its Dragontail restaurant management system.
According to Business Insider, the deal represents a significant strategic shift for Yum! Brands and a notable investment by LongRange Capital to revitalize the brand.
