Yum! Brands said Tuesday it has agreed to sell Pizza Hut to private equity firm LongRange Capital for $2.7 billion, ending more than five decades of ownership of the pizza chain.
Yum! Brands, which also owns KFC and Taco Bell, said it began exploring strategic alternatives for Pizza Hut in November 2025 after the chain became the weakest-performing brand in its portfolio.
Pizza Hut accounted for about 12% of Yum!'s revenue in 2025, down from 18% in 2019, reflecting the widening gap between the chain and faster-growing brands KFC and Taco Bell. In the United States, same-store sales declined for 10 consecutive quarters and fell another 4% in the first quarter of 2026.
LongRange Capital, founded in 2019, manages about $1.7 billion in assets and focuses on long-term investments and operational improvements. Its holdings include fitness chain 24 Hour Fitness and retail products company Batesville.
The $2.7 billion price tag was below estimates circulating among analysts in recent weeks, which ranged from about $3.5 billion to $4.3 billion.
Yum! said proceeds from the sale will help reduce its roughly $9.3 billion in long-term debt. The company plans to use the remaining funds for a combination of share repurchases, dividends and acquisitions.
Pizza Hut currently operates about 6,100 restaurants in the United States, down from 6,551 five years ago, along with roughly 14,000 international locations.
While domestic sales have struggled, Pizza Hut's international business has shown greater resilience. Same-store sales outside the United States rose 2% during the first quarter of 2026.
Founded in 1958 in Wichita, Kansas, Pizza Hut was acquired in 1977 by PepsiCo, which later spun off its restaurant division into what became Yum! Brands.
Under the deal, Pizza Hut will become a privately held company after more than 50 years under public ownership.
Investors responded positively when news first emerged that Yum! Brands had entered exclusive negotiations with LongRange. Shares of Yum! rose nearly 3% following reports of the talks.