Yum Brands, the parent company of Pizza Hut, is in exclusive discussions to sell the pizza chain to private equity firm LongRange Capital, reported Bloomberg quoting a source familiar with the matter. The talks have advanced in recent weeks and a deal could be reached within the next several weeks. However, the source told Bloomberg that there is still no certainty that an agreement will be finalized.
The potential sale marks a major step for one of the world’s most recognizable pizza brands. Pizza Hut has faced a difficult business environment in recent years as consumer spending habits shift and competition in the restaurant sector intensifies.
Why is Yum Brands looking to sell Pizza Hut?
Yum Brands began reviewing strategic options for Pizza Hut in 2025, including the possibility of a sale. The company said at the time that it was assessing the best path forward for the business as the chain struggled to match the performance of other brands within Yum’s portfolio, particularly Taco Bell.
Pizza Hut accounted for about 12% of Yum Brands’ total revenue in 2025, reported Reuters. Despite its global presence, the chain has faced challenges in the United States, where comparable sales have fallen for 10 consecutive quarters.
The broader restaurant industry has also faced pressure. Many consumers have reduced discretionary spending because of persistent inflation and concerns about the economy. Rising food and labor costs have added to the difficulties facing restaurant operators across the country.
Another factor affecting demand is the growing popularity of GLP-1 weight-loss drugs, reported Reuters. Industry executives and analysts have said these medications have encouraged some consumers to eat less and make healthier food choices, reducing demand for traditional fast-food items.
“Pizza Hut has struggled to keep pace with some of Yum’s stronger brands,” a source familiar with the matter told Bloomberg. “The company has been evaluating options to unlock value from the business,” it added.
Reuters reported in April that several investment firms were interested in acquiring Pizza Hut. Potential bidders included LongRange Capital, Sycamore Partners and Apollo Global Management, according to people familiar with the process.
What does this mean for restaurant industry?
The possible transaction comes during a period of increased dealmaking in the US restaurant sector. Several restaurant chains have left public markets in recent years as operators sought new ownership structures to navigate rising costs and weaker consumer demand.
Companies across the industry have faced higher expenses for ingredients, labor and operations. At the same time, customers have become more cautious about spending money on dining out. These trends have weighed on restaurant valuations and encouraged private equity firms to pursue acquisition opportunities.
The pizza segment has faced particular pressure. Competition from delivery platforms, independent restaurants and rival chains has made growth more difficult for established brands.
Papa John’s International has also explored strategic alternatives. Reuters reported earlier this month that investment firm Irth Capital Management was working with the company’s largest US franchisee on a potential deal to take Papa John’s private.
Neither Yum Brands nor LongRange Capital publicly commented on the reported negotiations yet.