Yum! Brands has announced the sale of its struggling Pizza Hut division to two separate companies.
The majority of Pizza Hut’s operations, excluding the Chinese mainland, will be acquired by private equity firm LongRange Capital for approximately $1.5 billion.
Yum China, a US-Chinese holding company spun off from Yum! Brands in 2016, will purchase the Chinese locations for $1.2 billion.
Pizza Hut, founded in 1958 in Wichita, Kansas, became an icon of fast-food pizza with its unlimited buffet offerings. It was bought by PepsiCo in 1977, then transferred two decades later to Tricon Global Restaurants, which rebranded as Yum! Brands in 2002.
Despite being the market leader in the early 2000s, Pizza Hut has lost ground to competitors like Domino’s and Papa John’s, which focus more on takeaway and delivery.
Unlike its rivals, owned by independent entities, Pizza Hut struggled as part of a large conglomerate where it was not a top priority.
Since 2019, hundreds of Pizza Hut restaurants have closed, with sales dropping 1% last year, though the brand remains profitable.
Analysts suggest that significant investment is needed for Pizza Hut to grow again, an undertaking Yum! Brands is unwilling to pursue.
In Belgium, the chain operates roughly 40 locations.
