Yum Brands has announced that it would sell its Pizza Hut chain for a combined $2.7 billion in two deals that highlight separate trajectories for its business in China and the rest of the world.
The chain’s stores in the United States and the rest of the world except for mainland China will be sold to the private equity firm LongRange Capital for $1.5 billion, the Louisville, Kentucky-based company said.
Those operations, which encompass over 15,500 restaurants in more than 100 countries, have struggled recently in many markets, hit by inflation, higher commodity costs and the growing use of weight-loss drugs, which has nudged consumers toward healthier options.
Same-store sales for Pizza Hut in the United States have declined for 10 consecutive quarters.
The China business, which has 4,375 stores but has been doing much better, will be acquired by its longtime operator Yum China Holdings for $1.2 billion.
“LongRange Capital is effectively buying a globally recognised brand in need of sharper focus, while Yum China’s move gives local operators more control over a key market,” said Sam North, a market analyst at eToro.
Thailand operations
In Thailand, Pizza Hut has 193 outlets operated by the master franchisee PH Capital Co Ltd, a 70:30 joint venture between the SET-listed shipping firm Thoresen Thai Agencies Plc (TTA) and PM Capital, owned by the Mahagitsiri family, who are also the major shareholders in TTA.
Before PH Capital took over in 2017, Yum had been managing the Pizza Hut brand directly, after Minor International pulled out in a dispute over franchise renewal costs in 2001. Minor went on to convert its existing branches to its new brand, The Pizza Company, which now has close to 450 outlets nationwide.
Pizza Hut was acquired by PepsiCo in 1977 and spun off in 1997 alongside KFC and Taco Bell to form the company that became Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to close in the third quarter of 2026, pending regulatory approvals.
Optimism in China
The acquisition of the Pizza Hut brand in China by Yum China underscores the company’s optimism about the chain’s future in the world’s second-biggest economy, said the China-based food industry analyst Zhu Danpeng.
“From store expansion to growth in revenue and profit per store, as well as an increase in its customer fan base, it is evident that after localisation, Yum China has strengthened its core competitiveness for sustainable development,” he said.
Yum China, which counts the private equity firm Primavera Capital and Jack Ma’s Ant Group as its main backers, has invested in China-specific products such as black truffle Yunnan mushroom pizza, new store formats and more affordable menu items aimed at cost-conscious consumers.
As a result, Pizza Hut has become the largest casual dining restaurant brand in China. It added 207 net new stores in the first quarter of 2026 and plans to expand to more than 6,000 outlets by 2028.
