Yum Brands Sells Pizza Hut to Private Equity Firm LongRange Capital
Quick Look
- Yum Brands is selling its struggling Pizza Hut chain to private equity firm LongRange Capital.
- The move comes after years of financial underperformance for Pizza Hut, which has lost market share to rivals like Domino's and delivery apps.
AI-generated summary
Why It Matters
Yum Brands announced the sale of Pizza Hut to private equity firm LongRange Capital. Pizza Hut has faced years of struggles and has transitioned from sit-down to delivery/carryout focus.
Yum Brands on Tuesday announced it is selling Pizza Hut to private equity firm LongRange Capital.
The sale caps off years of struggles for Pizza Hut, which has weighed on Yum's overall financial performance. In the U.S., the pizza chain has transitioned from the sit-down format and salad bars of yore to focus on delivery and carryout — far behind the curve. Rival Domino's Pizza has gobbled up market share from Pizza Hut for years; third-party delivery apps like DoorDash have further stolen sales from the chain.
In November, Yum said it was exploring strategic options for Pizza Hut.
Brothers Dan and Frank Carney founded Pizza Hut in 1958 in Wichita, Kansas. A year later, they were franchising the concept.
In 1969, Pizza Hut went public. Just two years later, it was the biggest pizza chain in the world, although it lost that title in 2017 to Domino's.
The deal severs Pizza Hut's decades-long ties to Taco Bell and KFC, its sister brands in Yum's portfolio.
Open Questions
- What is LongRange Capital's strategy for Pizza Hut?
- Will Pizza Hut regain market share?
- What is the financial impact on Yum Brands?
