Yum! Brands has agreed to sell Pizza Hut in a $2.7bn deal that ends its long ownership of the brand. The business will now be split between two buyers. LongRange Capital will take control of operations outside mainland China, while Yum China Holdings will manage the China market. The transaction is expected to close in 2026, pending approvals.
The decision follows years of weak performance for Pizza Hut in several key regions. The brand has faced rising pressure from stronger and faster rivals. Companies like Domino’s Pizza, Papa John’s Pizza, and Little Caesars have gained ground with cheaper prices and faster delivery.
At the same time, inflation has made customers more price-sensitive, forcing tougher competition. Food delivery apps have also changed eating habits, reducing demand for traditional dine-in pizza restaurants.
Pizza Hut remains one of the most recognisable fast-food brands in the world. It was founded in 1958 in Wichita, Kansas, by two brothers. It was later acquired by PepsiCo in 1977 before becoming part of Yum! Brands in 1997. Over the decades, it became a global symbol of casual dining and family pizza nights, especially in the US and international markets.
Yum! Brands says the sale will allow it to focus on stronger-performing brands like KFC and Taco Bell. The company believes a simpler structure will improve growth and efficiency. For Pizza Hut, the new owners see the deal as a chance to reset the brand and rebuild its position in a highly competitive global market.
