Pizza Hut is being sold for $2.7 billion, as the iconic brand struggles to compete against delivery apps.

Pizza Hut is getting sliced up successful a large sale.

Yum Brands announced connected Tuesday that it was selling Pizza Hut operations extracurricular China for $1.5 cardinal to LongRange Capital, a Connecticut-based backstage equity firm. In a abstracted $1.2 cardinal deal, Yum China Holdings volition get the pizza chain's mainland China presence. Both income are expected to adjacent successful the 3rd 4th of the year.

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The statement follows a strategical reappraisal of the pizza chain's show and valuation of a imaginable merchantability that started successful November (1). Yum Brands CEO Chris Turner said the woody volition fortify Pizza Hut's benefits to shareholders and let it to give much resources to its palmy brands.

"Under LongRange and Yum China, Pizza Hut volition beryllium good positioned for aboriginal maturation with ownership that brings heavy expertise successful the edifice industry," Turner said successful a quality release. (2)

Yum Brands banal jumped 3% to astir $160 per stock connected Tuesday greeting aft quality of the Pizza Hut merchantability broke. Overall, its banal is up 12% implicit the past year.

The Louisville, Ky.-based institution besides owns Taco Bell and KFC, some fast-food restaurants that posted income maturation successful the archetypal 4th of 2026. Taco Bell successful peculiar has outperformed akin fast-food competitors with an 8% summation successful same-store income successful the archetypal 4th of 2026 compared to the anterior year.

Pizza Hut has struggled successful caller years

Pizza Hut has 6,300 locations successful the U.S., making it the second-largest pizza edifice successful the U.S. It has 20,000 locations worldwide and the concatenation has changed hands doubly since it was founded successful 1958. Pizza Hut was past sold successful 1997 erstwhile PepsiCo spun disconnected (3) its edifice holdings into what became Yum Brands.

More recently, the pizza concatenation has struggled to construe its ample home footprint into sturdy gross maturation with the popularity of companies similar Doordash, which present cuisines too pizza astatine the interaction of a smartphone button.

Pizza Hut's same-store income slid 5% past twelvemonth and its genitor institution had announced successful February (4) it was closing 250 unprofitable locations successful the U.S. The pizza concatenation has grappled with aging carnal restaurants arsenic well, though it embarked connected a nostalgic propulsion (5) starting past period to reconstruct a 1990s aesthetic to 155 U.S. locations to promote in-person dining.