Yum! Brands says it will sell Pizza Hut in a $2.7 billion deal following a strategic review, separating the struggling pizza chain from the rest of its restaurant portfolio, which includes KFC, Taco Bell and The Habit Burger Grill. Under the agreement, Stamford, Connecticut-based private equity firm LongRange Capital will acquire Pizza Hut’s business outside mainland China for about $1.5 billion, while Yum China Holdings will purchase the mainland China business for about $1.2 billion. The companies expect the transactions to close in the third quarter.

Multiple outlets report that Pizza Hut has faced years of weak performance, with competition in the pizza market and stores seen as outdated contributing to lagging sales and earnings. Yum had been exploring options for Pizza Hut for several months after launching a strategic review in November. In the United States, Pizza Hut has about 6,300 locations and Yum plans to close around 250 underperforming U.S. stores in the first half of 2026. The deal is positioned as a way for Yum to focus on its other brands while giving Pizza Hut a new ownership structure for a potential turnaround.