American multinational fast food operator Yum! Brands Inc. has decided to sell Pizza Hut for a total of $2.7 billion to LongRange Capital.
As part of the sale, LongRange Capital will acquire Pizza Hut ex-China for $1.5 billion, according to a statement by Yum on Tuesday. Yum China Holdings Inc. will buy the rest of the business for $1.2 billion with both transactions aiming to be completed in the third quarter.
Following the development, shares of Yum! Brands jumped 1.51% to $157 ahead of the wall street opening bell. The company, which operates other famous fast food chains including KFC and Taco Bell had been exploring the sale over the past few months.
Towards the end of May, LongRange Capital outbid other players and entered into exclusivity for acquiring Pizza, Bloomberg news had reported citing sources.
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The operator had said that it is conducting a strategic review of Pizza Hut last year hut after trying to revive its stagnant sales. As per Bloomberg's dats, Pizza Hut's share of Yum's revenue has declined every year since 2019, shrinking to about 12% in 2025 from more than 18% in 2013.
Pizza Hut's sales hovered just above $1 billion during these six years, while Yum's revenue surged by about 47% to $8.2 billion last year.
Shares of Yum have slipped 5.51% in the last three months, though they recovered slightly in this last month.The Louisville, Kentucky-based company's market capitalisation stands at around $42 billion.
LongRange is a private equity firm which was founded in 2019. Its founder, Bob Berlin, has experience in the restaurant sector, having led an investment in Arby's, when he worked at The Baupost Group.
It owns 24 Hour Fitness as well as a ski resort company called Alpin Unlimited that's an investor in the KitzSki ski area in Kitzbuhel, Austria.
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