The chain's stores in the U.S. and the rest of the world except for mainland China will be sold to private equity firm LongRange Capital for $1.5 billion.
Those operations, which encompass over 15,500 restaurants in more than 100 countries, have struggled in recent years, hit by rising inflation, higher commodity costs and the growing use of GLP-1 weight-loss drugs, which has nudged consumers toward healthier options. U.S. Pizza Hut comparable store sales have declined for 10 straight quarters.
The China business, which has 4,375 stores but has been doing much better, will be acquired by its longtime operator Yum China Holdings (9987.HK), opens new tab for $1.2 billion.
"LongRange Capital is effectively buying a globally recognised brand in need of sharper focus, while Yum China's move gives local operators more control over a key market," said Sam North, market analyst at eToro.
Yum said last year it was exploring strategic options for Pizza Hut and entered exclusive talks with LongRange in May.
Pizza Hut was acquired by PepsiCo (PEP.O), opens new tab in 1977 and spun off in 1997 alongside KFC and Taco Bell to form the company that became Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to close in the third quarter of 2026, pending regulatory approvals.
