Pizza Hut, struggling with delivery competition, sold for $2.7 billion
Summary
Yum Brands is selling its Pizza Hut chain for $2.7 billion due to declining sales and strong competition in delivery services. The sale splits Pizza Hut into two parts: LongRange Capital will buy the business outside mainland China for $1.5 billion, while Yum China Holdings will buy the mainland China operations for about $1.2 billion.Key Facts
- Pizza Hut is 68 years old and has faced increasing delivery competition and outdated restaurants.
- Yum Brands owns Pizza Hut, KFC, and Taco Bell.
- Pizza Hut's sales fell 2% last year, while Yum Brands’ overall sales grew 5%.
- Yum Brands plans to close 250 U.S. Pizza Hut stores to cut losses.
- China is Pizza Hut’s second-largest market, making up 19% of its sales.
- LongRange Capital will buy Pizza Hut outside mainland China for $1.5 billion.
- Yum China Holdings will buy the China Pizza Hut business for about $1.2 billion.
- The sale aims to help Pizza Hut grow by bringing specialized restaurant owners to manage it.
- Yum Brands expects the sale to finish in the third quarter of the year.
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