Pizza Hut, founded in Wichita, will be sold for about $2.7 billion as parent company Yum Brands offloads the brand amid pressure from changing restaurant and delivery habits. Yum said Tuesday that private equity firm LongRange Capital will buy Pizza Hut’s operations in the U.S. and other non–mainland China markets for about $1.5 billion, while Yum China Holdings Inc. will purchase the mainland China Pizza Hut business for approximately $1.2 billion.
Yum Brands also cited business performance shifts in its decision. The company said global sales rose 5% last year, while Pizza Hut’s sales fell 2%. Yum began exploring options for Pizza Hut in November, and in February it announced plans to close 250 U.S. Pizza Hut locations. Yum expects the U.S. and China sales to close in the third quarter.
As Yum completes the sale process, the company says it will be able to focus on brands with stronger sales, including KFC and Taco Bell. The company’s statement also noted Pizza Hut’s long history—founded in 1958 by two brothers who borrowed $600—and its scale, with 19,974 Pizza Hut restaurants worldwide at the end of last year. Western Kansas News reported on the split sale and expected timing.