Yum Brands to Sell Pizza Hut for $2.7 Billion

Yum Brands is selling its portion of the pizza business.

Yum connected Tuesday said it struck a woody with private-equity steadfast LongRange Capital, which volition get Pizza Hut's operations extracurricular mainland China for astir $1.5 billion. Yum China Holdings agreed to get Pizza Hut successful mainland China successful a abstracted woody for astir $1.2 billion.

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Yum said precocious past twelvemonth that it was conducting a strategical reappraisal of Pizza Hut, aft the concatenation dragged connected its wide results. The Louisville, Ky.-based company's different brands, including Taco Bell and KFC, person performed amended successful caller years. 

Yum said the deals are expected to adjacent successful the 3rd quarter. During an capitalist gathering Tuesday, Yum Brands executives said that the transactions volition let the institution to amended absorption connected its higher maturation brands and payment investors. 

Yum shares gained 2.1% successful greeting trading Tuesday.

The U.S. pizza manufacture boomed pursuing the Covid-19 pandemic, but maturation has stalled since. U.S. income among fast-food pizza chains fell 0.3% past twelvemonth compared with 2024 levels, the lone nutrient class to registry a diminution during the play among the 10 tracked, according to market-research steadfast Technomic.

U.S. pizza chains' wide $31 cardinal successful income past twelvemonth ranked sixth among edifice categories, down from 4th successful 2019, the steadfast said.

Since Yum CEO Chris Turner started connected the occupation successful the apical spot past year, helium has said helium wanted to merchantability Pizza Hut. U.S. income astatine the concatenation person fallen for astir 2 years.

In the U.S. Pizza Hut is the second-largest pizza-restaurant operator, with astir 6,300 stores and $5.1 cardinal successful home income past year, according to market-research steadfast Technomic. Worldwide, Pizza Hut operates astir 20,000 stores.

Yum has said it would adjacent astir 250 underperforming U.S. units this year, joining Papa John's International successful closing restaurants successful effect to the sector's challenges.

Pizza Hut has introduced deals and paper items successful the U.S. this year, including a caller rank programme and a Crispy Parm Pan Pizza, among different caller crust options. It has besides leaned into nostalgia, bringing backmost the Book It! younker speechmaking programme for the summer.