Struggling Pizza Hut chain to be sold for $2.7bn

Yum! Brands is selling its struggling Pizza Hut chain in a deal worth $2.7bn (£2bn), the company has announced.

Private equity firm LongRange Capital will acquire the brand outside of mainland China for $1.5bn, while Yum China Holdings will buy the mainland China operations for $1.2bn.

"Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," said Yum! Brands chief executive Chris Turner.

The decision comes after a prolonged period of difficulty for Pizza Hut - a name synonymous with casual dining in America.

Yum! Brands first revealed it was exploring a potential sale in November 2025, following several quarters of declining US same-stores. The American market is highly critical for the chain, as it makes up 40% of its total international sales .

The drop in performance has been driven by intensifying competition from revival chains like Domino's, Papa John's, and Little Caesars. At a time when inflation remains sticky , these rivals have aggressively discounted their offerings to win over price-sensitive consumers.

Moreover, mid-sized regional chains have also chipped away at the market. These smaller, more nimble fast-food competitors have adapted faster to changing consumer habits in the so-called "pizza wars".

At the same time, the rapid rise of third-party delivery apps has flooded the market with alternative options, diluting Pizza Hut's historic dominance.