Pizza Hut officially has a new owner.
Yum! Brands, the parent company of KFC, Taco Bell and Pizza Hut, has completed its $1.5 billion sale of Pizza Hut’s operations outside mainland China to private equity firm LongRange Capital, ending its nearly 30-year ownership of the pizza chain, the companies said Tuesday.
Yum could also receive another $75 million by 2030 if Pizza Hut hits certain performance targets under its new ownership.
The deal is part of a larger $2.7 billion breakup of Pizza Hut. Last month, Yum completed a separate $1.2 billion sale of its mainland China Pizza Hut business to Yum China Holdings. Together, the two transactions effectively remove Pizza Hut from Yum’s portfolio.
Yum will now focus on the brands it sees as having the strongest growth potential: KFC, Taco Bell and Habit Burger & Grill. Together, the three brands operate more than 44,000 restaurants across 151 countries and territories.
“Our unmatched digital capabilities and scale and our relentless focus on the future consumer, strengthening restaurant economics and leveraging Byte by Yum! will allow us to accelerate growth and deliver sustainable long-term value for our shareholders,” Chris Turner, CEO of Yum! Brands, said in a statement.
Pizza Hut will now have a chance to turn the business around without the pressure of being part of a publicly traded company.
The sale follows Yum’s plans to close 250 underperforming U.S. locations and its strategic review of the chain. Pizza Hut has also faced challenges with a new AI delivery system, with one franchisee alleging it contributed to $100 million in losses by slowing deliveries.
As part of its turnaround, Pizza Hut is also leaning into nostalgia. Franchisees are restoring restaurants to their 1980s and 1990s look, complete with red cups, checkered tablecloths and personal pan pizzas. As of early July, there are now about 154 “classic” Pizza Hut locations across the U.S.
The retro approach gives customers an experience beyond delivery apps while costing less than a full renovation. Restoring a location costs about $90,000 to $95,000, compared with up to $300,000 for a standard remodel. That strategy could be particularly important as dine-in customers now account for just 18 percent of Pizza Hut’s business.
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