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Yum! Brands sells struggling Pizza Hut in $2.7 billion deal

Yum! Brands sells struggling Pizza Hut in $2.7 billion deal

Summary

Yum! Brands is selling Pizza Hut in a deal worth $2.7 billion. The U.S. private equity firm LongRange Capital will buy Pizza Hut outside of mainland China for $1.5 billion, while the Chinese part of Pizza Hut will be sold by Yum China for $1.2 billion.

Key Facts

  • Yum! Brands owns restaurant chains including KFC, Taco Bell, and Pizza Hut.
  • Pizza Hut’s mainland China business will be sold separately by Yum China for $1.2 billion.
  • The rest of Pizza Hut will be sold to LongRange Capital, a U.S. private equity firm, for $1.5 billion.
  • Pizza Hut faced declining sales, prompting Yum! Brands to explore selling the chain starting in November.
  • Pizza Hut was founded in 1958 in Wichita, Kansas.
  • PepsiCo bought Pizza Hut in 1977 but spun off its restaurants in 1997 to create Yum! Brands.
  • Yum! Brands expects the new owners to help Pizza Hut grow with their experience in the restaurant business.
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