Struggling Pizza Hut is being sold off for $2.7 billion

Pizza Hut is really going through it. After being called outdated and struggling to compete in a crowded industry, parent brand Yum Brands has decided to sell off the 68-year-old chain and stop the bleeding.

Yum Brands is cutting the cord

Yum Brands has made the somewhat surprising move to part ways and sell Pizza Hut for $2.7 billion.

The private equity firm LongRange Capital will buy the chain, but this excludes the mainland China business. It brings LongRange Capital's price tag to about $1.5 billion.

China is Pizza Hut's second-largest market, with only the U.S. market bigger. The Chinese market is so big that it makes up about 19% of Pizza Hut's sales.

Yum China Holdings Inc. will purchase the mainland China restaurants for about $1.2 billion.

Pizza Hut was the odd one out

Yum Brands owns a handful of popular restaurants, including Taco Bell and KFC. Last year, Yum Brands' global sales increased by 5%. Pizza Hut was the outlier though and actually saw sales shrink by 2%.

Yum Brands started looking into options for Pizza Hut in November 2025, and then in February 2026 announced plans to close 250 locations in the US. The writing was on the wall at that point.

“Pizza Hut has long been the weak link in Yum’s portfolio,” wrote Neil Saunders, managing director of GlobalData.

“Despite efforts to revitalize the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to.”

Poised for future growth

The good news is that it doesn't look like Pizza Hut is going anywhere. The acquisition is meant to position the chain for growth. New ownership means it will most likely get more attention.

As for what that means for each location, closures, and more, there's no word yet.

A good time to hit up Pizza Hut

With so much uncertainty, this is the best time to hit up your local Pizza Hut and enjoy it before any changes or closures are made.

Source: ABC News