The company announced Tuesday that private equity firm LongRange Capital will acquire Pizza Hut’s operations outside mainland China for about $1.5 billion. Meanwhile, Yum China Holdings will purchase the mainland China Pizza Hut business for approximately $1.2 billion.
The transaction marks a significant turning point for the 68-year-old pizza chain, which has struggled for years amid increasing competition and changing consumer habits. While Yum Brands reported a five percent increase in global sales last year, Pizza Hut’s sales declined by two percent, highlighting the challenges facing the brand.
Pizza Hut remains one of the largest restaurant chains in the world, operating nearly 20,000 locations globally at the end of 2025. However, the company has faced mounting pressure from rivals and food delivery platforms that have transformed the restaurant industry.
Industry analyst Neil Saunders of GlobalData described Pizza Hut as the weakest performer within Yum Brands’ portfolio, noting that returning the brand to sustained growth would require substantial investment and long-term commitment.
Founded in 1958 in Wichita, Kansas, Pizza Hut was established by brothers Dan and Frank Carney, who borrowed $600 from their mother to open their first restaurant. The company’s iconic red-roof design debuted in 1969, and by 1971 Pizza Hut had become the world’s leading pizza chain by sales.
The chain’s fortunes began to shift during the 1980s as competitors such as Domino’s Pizza expanded rapidly through delivery-focused business models. Unlike many competitors, Pizza Hut remained heavily invested in large dine-in restaurants, making it more difficult to adapt to changing consumer preferences.
In recent years, the rise of delivery platforms such as DoorDash and Uber Eats further intensified competition by giving consumers access to a wider variety of restaurant options beyond pizza.
Earlier this year, Yum Brands announced plans to close 250 underperforming Pizza Hut locations across the United States as part of broader restructuring efforts.
Yum Brands Chief Executive Officer Chris Turner said the sale will allow the company to concentrate on faster-growing brands, including KFC and Taco Bell, while positioning Pizza Hut for a new phase of development under its new owners.
“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry,” Turner said.
The company expects both transactions to be completed during the third quarter of 2026. Investors reacted positively to the announcement, with Yum Brands shares rising three percent following the news.
The sale represents one of the biggest restaurant industry deals of the year and signals a major shift for a brand that once dominated the global pizza market but has struggled to keep pace with changing consumer trends.