Yum Brands (YUM) is selling the iconic Pizza Hut restaurant chain to a private equity group for $2.7 billion U.S.
In a news release, Yum Brands said that the private equity firm LongRange Capital will buy Pizza Hut, excluding the restaurant chain’s mainland China business.
Pizza Hut has been around for 68 years but has struggled over the last decade with rising competition and the growth of delivery culture rather than dining in at its restaurants.
Yum Brands, which also owns KFC and Taco Bell, began to explore options for Pizza Hut late last year as the chain’s sales fell 2%.
This February, Yum Brands announced plans to close 250 U.S. Pizza Hut locations. Pizza Hut had 19,974 restaurants worldwide at the end of 2025.
Pizza Hut was founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 U.S. to open the first restaurant.
By 1971, the company was the top pizza chain in the world by sales. PepsiCo (PEP) bought Pizza Hut in 1977 but later spun off its restaurant division into Yum Brands in 1997.
By the 1980s, Domino’s Pizza (DPZ) had become the fastest-growing U.S. pizza company, driven by its promise of 30-minute delivery.
As pizza delivery grew in popularity, Pizza Hut was saddled with a chain of dine-in restaurants. In 2020, as pizza delivery boomed during the pandemic, Pizza Hut closed 300 locations.
The chain has been further pressured by the rise of companies such as DoorDash (DASH) and Uber Eats (UBER).
U.S. pizza sales have slowed since the Covid-19 pandemic ended, falling about 1% in 2025, according to Technnomic, a restaurant consulting firm.
YUM stock has gained 13% over the past year to trade at $157.67 U.S. per share.
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