Pizza Hut brand will be sold by Yum Brands for $2.7 billion

As the fast-food industry battles fierce competition and frugal consumer spending. Yum Brands said on Tuesday that it would sell its Pizza Hut company for $2.7 billion.

Yum China Holdings will pay $1.2 billion to acquire Pizza Hut in mainland China, while LongRange Capital. A private equity group, will pay $1.5 billion for the remaining portion of the company.

Due to the growing usage of GLP-1 weight-loss medications, which encourage consumers to choose healthier options. Rising inflation and high commodity prices have impacted U.S. pizza franchises that are already struggling with low demand.

After being purchased by PepsiCo in 1977, Pizza Hut, KFC, and Taco Bell split out in 1997 to create the business that would eventually become Yum Brands in 2002.

Yum anticipates closing the deal in the third quarter of 2026, subject to regulatory approvals, and will keep Taco Bell and KFC.

In order to deal with more intense competition and changing consumer demands. American businesses are increasingly ceding control to local operators, as evidenced by the company’s sale in China.

Over 18,000 restaurants are owned and franchised by Yum China, a spin-off of Shanghai-based Yum Brands. Which plans to grow Pizza Hut to over 6,000 sites by 2028.

Additionally, Yum Brands and Yum China decided to work together on Taco Bell’s expansion in mainland China and to provide financial incentives linked to KFC China’s growth.

After earlier losses, Yum China’s US-listed shares held steady, while Yum Brands’ shares, which also revealed a $4 billion share repurchase, increased by roughly 2%.