Yum Brands is selling its slice of the pizza business.
Yum on Tuesday said it struck a deal with private-equity firm LongRange Capital, which will acquire Pizza Hut’s operations outside mainland China for about $1.5 billion. Yum China Holdings agreed to acquire Pizza Hut in mainland China in a separate deal for roughly $1.2 billion.
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Yum said late last year that it was conducting a strategic review of Pizza Hut, after the chain dragged on its overall results. The Louisville, Ky.-based company’s other brands, including Taco Bell and KFC, have performed better in recent years.
Yum said the deals are expected to close in the third quarter. During an investor meeting Tuesday, Yum Brands executives said that the transactions will allow the company to better focus on its higher growth brands and benefit investors.
Yum shares gained 2.1% in morning trading Tuesday.
The U.S. pizza industry boomed following the Covid-19 pandemic, but growth has stalled since. U.S. sales among fast-food pizza chains fell 0.3% last year compared with 2024 levels, the only food category to register a decline during the period among the 10 tracked, according to market-research firm Technomic.
U.S. pizza chains’ overall $31 billion in sales last year ranked sixth among restaurant categories, down from fourth in 2019, the firm said.
Since Yum CEO Chris Turner started on the job in the top spot last year, he has said he wanted to sell Pizza Hut. U.S. sales at the chain have fallen for roughly two years.
In the U.S. Pizza Hut is the second-largest pizza-restaurant operator, with about 6,300 stores and $5.1 billion in domestic sales last year, according to market-research firm Technomic. Worldwide, Pizza Hut operates around 20,000 stores.
Yum has said it would close around 250 underperforming U.S. units this year, joining Papa John’s International in closing restaurants in response to the sector’s challenges.
Pizza Hut has introduced deals and menu items in the U.S. this year, including a new membership program and a Crispy Parm Pan Pizza, among other new crust options. It has also leaned into nostalgia, bringing back the Book It! youth reading program for the summer.
