Yum to sell struggling Pizza Hut chain for US$2.7 billion
Pizza Hut’s share of Yum’s revenue has declined every year since 2019
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YUM! Brands agreed to sell its struggling Pizza Hut chain for US$2.7 billion to a private equity firm and its China business.
Pizza Hut in Mainland China will be acquired by Yum China for US$1.2 billion, while the rest of the business will go to private equity firm LongRange Capital for US$1.5 billion.
Yum’s shares rose about 1 per cent in premarket trading. The stock had gained 2.2 per cent this year through Monday’s close, compared with a roughly 10 per cent advance for the S&P 500 Index.
Yum has owned Pizza Hut since the restaurant company spun off from PepsiCo in 1997. PepsiCo bought Pizza Hut in 1977 and snapped up Taco Bell the following year.
Bloomberg reported in May that LongRange Capital had entered exclusive talks with Yum to buy Pizza Hut.
The company said last year that it was conducting a strategic review after years of trying to revive its stagnant sales at the chain known for its signature pan pizzas with thick, buttery crust.
It’s faced increasing competition in recent years, both within the pizza market and the broader restaurant industry.
Domino’s Pizza trumped the chain in numerous areas, including menu innovation, marketing, ordering technology and delivery infrastructure, said Neil Saunders, managing director at GlobalData.
Pizza Hut also is a less popular option for casual diners who are eating in, as they look for larger menus and more contemporary environments, he said.
Pizza Hut’s share of Yum’s revenue has declined every year since 2019, shrinking to about 12 per cent in 2025 from more than 18 per cent six years earlier, according to data compiled by Bloomberg.
During that period, Pizza Hut’s sales have hovered just above US$1 billion, while Yum’s revenue grew by about 47 per cent to US$8.2 billion last year. BLOOMBERG, REUTERS
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