Struggling Pizza Hut chain to be sold for $2.7bn
Summary
Yum! Brands is selling the Pizza Hut chain for $2.7 billion. A private equity firm will buy the brand outside mainland China, while Yum China will acquire the mainland China operations.Key Facts
- Pizza Hut is being sold by Yum! Brands in a deal worth $2.7 billion.
- LongRange Capital will buy Pizza Hut’s business outside mainland China for $1.5 billion.
- Yum China Holdings will purchase the mainland China Pizza Hut operations for $1.2 billion.
- Pizza Hut has faced challenges due to competition from other pizza chains and fast-food brands.
- The American market accounts for 40% of Pizza Hut’s international sales and is important to the chain.
- Rising use of delivery apps and aggressive pricing from competitors have hurt Pizza Hut’s sales.
- Pizza Hut was founded in 1958 and became part of Yum! Brands in 1997 after being owned by PepsiCo.
- Yum! Brands will focus more on its other major brands like KFC and Taco Bell after this sale.
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