Struggling Pizza Hut snapped up by private equity in $2.7bn deal

Pizza Hut, the struggling restaurant chain, is being sold by its owner Yum Brands to private equity firm Long Range Capital for $2.7 billion. The deal excludes mainland China locations, which Yum China will acquire for about $1.2 billion, leaving the US and other markets to Long Range. This follows Yum's decision in November to explore a strategic review and its earlier plan to close about 250 Pizza Hut outlets in the US. The sale is framed as a path to unlock shareholder value and position Pizza Hut for long-term growth, with Yum and Long Range emphasizing market-tailored strategies.

Yum Brands said the sale would provide an ownership structure tailored to distinct markets and competitive strengths, positioning Pizza Hut for long-term growth. Long Range Capital, founded in 2019 and based in Stamford, Connecticut, controls a $1.8 billion investment pool and pursues a company-focused, customer-first philosophy. The deal excludes Pizza Hut China, whose business will move to Yum China; the UK market has faced turmoil with the DC London Pie collapse and job losses, illustrating broader sector pressures. The arrangement comes after Yum considered strategic options in November and follows competitive pressure from Domino's and delivery platforms like DoorDash and Deliveroo.