Yum! Brands, the parent company of KFC and Taco Bell, has agreed to sell its Pizza Hut chain in a major $2.7 billion deal. The sale ends nearly 68 years of ownership for the iconic pizza brand, which has faced tough times recently.
Private equity firm LongRange Capital will buy Pizza Hut’s global business outside mainland China for about $1.5 billion. Yum China Holdings will purchase the China operations for roughly $1.2 billion. The deals are expected to close in the third quarter of 2026.
Pizza Hut, founded in 1958, operates over 15,500 restaurants in more than 100 countries. However, it has struggled with declining sales, outdated stores, strong competition from delivery apps, and rivals like Domino’s. Yum! Brands said the sale will help it focus on its stronger brands, KFC and Taco Bell.
Yum expects to receive about $2.3 billion in net proceeds after taxes and fees. It may also get an extra $75 million earn-out later. The company plans to use part of the money for share buybacks and expects some one-time costs.
LongRange Capital called Pizza Hut a beloved global brand and promised to invest in its future growth with a customer-focused approach. Many hope the new owners can modernize stores, improve menus, and bring back customers in a changing restaurant industry.
