For Pizza Hut, a return to its iconic retro red roof era, complete with ‘80s-inspired vinyl booths and checkered tablecloths, wasn’t enough to save the struggling restaurant chain from complete financial mayhem. Instead, the circumstance of its salvation is a tale as old as time: an acquisition, namely by private equity.
Yum! Brands announced Tuesday that it has agreed to sell Pizza Hut for $2.7 billion in a split deal. LongRange Capital — a U.S. private equity firm that, funnily enough, also owns 24 Hour Fitness and a funeral coffin and urn maker — paid $1.5 billion for its share and Yum China Holdings, a Chinese restaurant company, forked over $1.2 billion.
The former will be responsible for leading the global business, while the latter will acquire the mainland China operations.
“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry,” Chris Turner, Chief Executive Officer at Yum! Brands, said in a June 16 news release. “Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!’s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we’re excited for the next chapter.”
The recent deal comes after Yum! announced “the initiation of a formal review of strategic options” for Pizza Hut back in Nov. 2025. For years, the multinational brand has suffered from a prolonged sales decline due to the rise of third-party delivery apps, mounting industry competition and the so-called “pizza wars,” pitting them against Domino’s, Papa Johns and Little Caesars.
In an earnings conference call on Feb. 4, Turner said Pizza Hut would close roughly 250 American restaurants due to poor sales. The closures, which are part of the brand’s “Hut Forward” turnaround strategy, were slated to take place in the first half of 2026, Yum! Brands Chief Financial Officer Ranjith Roy told Fast Company.
Yum! said it expects both transactions to be completed in the third quarter of 2026, subject to customary closing conditions.
