Yum Brands is parting ways with Pizza Hut in a deal valued at approximately $2.7 billion, as the company looks to concentrate its resources on its faster-growing chains, Taco Bell and KFC.
Under the agreement, private equity firm LongRange Capital will acquire Pizza Hut’s core business for around $1.5 billion, while Yum China will take over the brand’s Mainland China operations in a separate $1.2 billion transaction.
The pizza category has been under pressure from rising inflation and elevated commodity costs, compounding an already soft demand environment. Adding to the headwinds, the increasing popularity of GLP-1 weight-loss medications has been steering consumers toward lighter food choices, a shift that has hit U.S. pizza chains particularly hard.
CEO Chris Turner, who stepped into the role in October 2025, framed the divestment as a strategic sharpening rather than a retreat, noting it frees Pizza Hut to chart its own course under new ownership while letting Yum double down on its two flagship brands. Speaking on CNBC’s Mad Money, Turner pointed to substantial untapped potential abroad, particularly for Taco Bell, which currently runs about 1,200 locations outside the U.S. but could expand into the thousands globally. He also called KFC a “powerhouse,” citing its roughly 34,000-strong global footprint.
Pizza Hut’s roots trace back to 1958 in Wichita, Kansas. PepsiCo acquired the chain in 1977, before it was spun off in 1997 alongside KFC and Taco Bell, eventually forming Yum Brands in 2002.
