Pizza Hut Acquired by Private Equity in $2.7 Billion Sale

Yum Brands has sold its Pizza Hut brand in a combined transaction valued at $2.7 billion. Private equity firm LongRange Capital acquired Pizza Hut for approximately $1.5 billion. Separately, Yum China Holdings Inc. purchased the chain's mainland China locations for about $1.2 billion.

The sale follows a period of challenges for Pizza Hut, which has faced increasing competition. In 2017, Domino's surpassed Pizza Hut to become the world's largest pizza chain. In 2018, Pizza Hut announced plans to close 500 of its nearly 7,500 locations by mid-2021. Further closures were announced in 2020, with up to 300 additional locations affected after one of its largest franchisees, NPC International, filed for bankruptcy.

Yum Brands began exploring options for Pizza Hut in November 2025, while its other brands, KFC and Taco Bell, have continued to perform successfully. At the end of last year, Pizza Hut operated 19,974 restaurants worldwide, though many U.S. locations have shuttered, resulting in nearly 1,500 fewer sites compared to its U.S. peak in the early 1990s.

Pizza Hut was founded in 1958 by brothers Dan and Frank Carney, who received a $600 loan from their mother. The company went public in 1969 and became the largest global pizza chain two years later.

The restaurant and food sector has seen significant private equity investment, with firms investing $94.5 billion from 2014 to 2024, according to PitchBook data. Other casual dining brands have also undergone private equity acquisitions, such as Red Lobster in 2014, which later filed for Chapter 11 bankruptcy in 2024. Neil Kiefer, cofounder of Hooters, also bought back over 100 locations from private equity last year.

According to Fortune, the acquisition by LongRange Capital will require addressing Pizza Hut's ongoing challenges and finding a path for future growth.