By Roy Denish
Hold onto your crusts, because Yum Brands is officially tossing the entire Pizza Hut pie into the hands of new owners for a whopping 2.7 billion bucks.
After letting the idea proof in the kitchen since late last year, the big bosses have officially sliced the business right down the middle for two separate buyers.
International Business Goes to LongRange Capital
The international slice, everything outside of mainland China, is being scooped up by the private equity big-cheeses at Long Range Capital for a cool 1.5 billion.
Meanwhile, the massive mainland China portion of the pie is staying local, selling to Yum China Holdings for 1.2 billion.
It turns out the two markets needed completely different toppings to thrive, so splitting the dough made the most sense.
A Soggy Bottom Line Forces a Sale
The decision to deliver the historic brand to someone else comes after years of a soggy bottom line.
The Hut built its empire on that classic, red-roofed, dine-in experience, but it’s been struggling to keep up with leaner, faster delivery drivers and third-party delivery apps.
Throw in the rising cost of extra cheese, inflation, and changing appetites, and the kitchen started getting a little too hot, forcing them to close down hundreds of underperforming stores earlier this year.
Yum Brands Focuses on KFC and Taco Bell
By wiping Pizza Hut off their menu, Yum Brands is focusing all their kitchen prep on their high-growth cash cows: KFC and Taco Bell.
The corporate chefs expect to clear about 2.3 billion in net proceeds after taxes and fees, which they are throwing right into a massive 4 billion dollar share buyback.
The board has given the recipe its unanimous seal of approval, and the whole deal is expected to be boxed up and delivered in the third quarter of 2026.
