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Yum! Brands Eyes Sale of Pizza Hut to PE Firm
31 May
Summary
- Yum! Brands is in exclusive talks to sell Pizza Hut to LongRange Capital.
- Pizza Hut's revenue contribution to Yum has declined significantly.
- The potential sale is a strategic move to focus on higher-performing brands.
Yum! Brands is currently engaged in exclusive discussions with private equity firm LongRange Capital regarding the potential sale of its Pizza Hut division. This development follows a strategic review initiated by Yum last year to address the pizza chain's growth challenges.
Pizza Hut's significance within Yum's portfolio has diminished, accounting for about 12% of revenue in 2025, a decrease from over 18% in 2019. During this period, Pizza Hut's annual revenue has remained around $1 billion, while Yum's total revenue expanded to $8.2 billion last year.
LongRange Capital, founded in 2019, has emerged as the leading bidder, surpassing other interested parties such as Sycamore Partners. Although a deal could be finalized in the coming weeks, its certainty remains undetermined.
This potential transaction represents a significant strategic shift for Yum, enabling a sharper focus on its better-performing restaurant brands and franchise operations.
