Pizza Hut is getting a new owner after years of falling behind its rivals. Yum! Brands announced that it is selling the pizza chain for a total of $2.7bn (£2bn) as part of a move to focus on its stronger brands.
The deal will be split into two parts. Private equity firm LongRange Capital will buy Pizza Hut’s business outside mainland China for $1.5bn, while Yum China will buy the chain’s operations in China for $1.2bn.
The sale is expected to be completed in the third quarter of 2026.
Pizza Hut was once one of the biggest names in fast food, but it has struggled in recent years as customers increasingly turned to rivals such as Domino’s.
The chain has lost ground in the delivery market, where Domino’s built a strong reputation through fast service and digital ordering. Delivery apps such as DoorDash and Uber Eats have also increased competition by giving customers more food choices than ever before.
Pizza Hut’s sales in the United States fell 8.2% last year, even though overall sales at Yum! Brands rose 5%.
The pizza chain made up about 12% of Yum! Brands’ revenue in 2025, but the company said it now wants to focus on brands that are growing faster.
Yum! Brands will continue to own KFC and Taco Bell, which remain its biggest growth drivers. Excluding Pizza Hut, the company’s operating profit increased by 10% last year.
Investors reacted positively to the announcement. Shares in Yum! Brands rose nearly 2% in New York trading, while the company also approved a new $4bn share buyback programme.
The sale comes at a challenging time for the fast food industry. Companies are dealing with higher food costs and changing consumer habits. Some analysts have also pointed to the growing use of GLP-1 weight-loss drugs, which may reduce demand for high-calorie meals.
China remains one of Pizza Hut’s most important markets, accounting for 19% of the brand’s global sales.
Yum China said it plans to expand the chain aggressively and increase its network to 6,000 restaurants by 2028.
Outside China, LongRange Capital is expected to invest in improving the customer experience and boosting the chain’s performance.
Earlier this year, Yum! Brands announced plans to close 250 underperforming Pizza Hut restaurants across the United States.
