The company said that the sale aligns with maximizing shareholder value while providing effective ownership for the pizza chain
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NEED TO KNOW
- Pizza Hut was sold for $2.7 billion after a months-long review by the former owner
- The brand was purchased by private equity firm LongRange Capital and Chinese restaurant company Yum China Holdings
- Around 250 underperforming U.S. Pizza Hut locations are expected to close in 2026
Pizza Hut is entering a new era of ownership.
The pizza chain was sold for $2.7 billion to LongRange Capital and Yum China Holdings, Inc, former owner Yum! Brands, Inc, announced in a June 16 press release.
The pizza brand, excluding Mainland China, was purchased by private equity firm LongRange Capital for $1.5 billion. Yum! Brands will also receive an earn-out of $75 million by 2030 from LongRange.
Per the release, LongRange intends to lead the brand “with a customer-centric and operationally oriented approach.”
A spokesperson for the private equity firm said in a separate release that LongRange looks forward to "working with Pizza Hut's talented team and franchise partners to drive its next phase of growth through investments that deliver consistently great food and experiences for customers around the world."
Yum! Brands will continue to provide its technology platform, Byte by Yum!, to the Pizza Hut locations owned by LongRange Capital, along with providing certain corporate services throughout the separation.
Yum China Holdings, Inc, a Chinese restaurant company that already operates Pizza Huts in China, will acquire the brand in Mainland China for $1.2 billion.
The release noted that Yum! Brands and Yum China remain partners in running KFC China and Taco Bell in Mainland China.
Credit: Jakub Porzycki/NurPhoto via Getty
Yum! Brands said in the release that the decision to sell Pizza Hut follows a “comprehensive review of strategic” options for the chain that began in November 2025.
“Yum!'s leadership team and Board of Directors determined the sale provides the strongest path to maximize shareholder value while providing Pizza Hut an ownership structure tailored to its distinct markets, competitive strengths and long-term priorities,” the company wrote.
The company said in a November 2025 press release that it was considering selling Pizza Hut.
“The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” a spokesperson for the brand said in the statement at the time.
On Feb. 4, Yum! Brands CEO Chris Turner said on an earnings call that the company expected to close about 250 American Pizza Hut locations.
The “targeted closures of underperforming units” were expected to aid “a longer-term acceleration of the brand,” an executive shared on the call.
KTLA reported that CFO Ranjith Roy noted on the call that the franchise intended to close around 250 “underperforming” stores in the first half of 2026. CNN reported that these closures would account for 3% of the chain's U.S. footprint.
“Looking back at 2025, Pizza Hut saw a 1 percent same-store sales decline globally for the quarter of the year,” Roy said, noting that other locations in Asia, Latin America and the Middle East saw an increase.
Yum! Brands said in the June 16 release that the final sales of Pizza Hut's branches are expected to occur in the third quarter of 2026 and were “unanimously approved” by its board of directors.
A representative for Yum! Brands said in the release that under the two companies, “Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry.”
“Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we're excited for the next chapter,” the company said.
Yum China did not immediately reply to PEOPLE's request for comment on the acquisition.
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