All articles tagged with #longrange capital
Yum Brands is selling Pizza Hut to LongRange Capital for $2.7 billion as the struggling pizza chain has announced nationwide closures; LongRange says it will partner with Yum to guide the brand’s next growth phase, but it did not disclose specific plans, including store closures. Pizza Hut operates more than 15,000 locations globally, including over 150 in Pennsylvania.
U.S. pizza sales have slowed post-pandemic, with Pizza Hut underperforming peers (down 8.2% in the last year, per Technomic). Yum Brands agreed to sell Pizza Hut to Connecticut-based LongRange Capital, enabling Yum to focus more on higher-growth brands. LongRange, founded by Bob Berlin, plans to work with Pizza Hut’s executives and franchisees to drive the chain’s next growth phase, while Yum China and U.S. sales are expected to close in the third quarter.
Yum Brands is selling Pizza Hut for $2.7 billion: LongRange Capital will buy the non-China operations for about $1.5 billion, while Yum China Holdings will acquire the mainland China business for about $1.2 billion (China accounts for roughly 19% of Pizza Hut sales). The deal, expected to close in the third quarter, lets Yum focus on its stronger brands like KFC and Taco Bell as Pizza Hut has faced slowing U.S. sales and increased competition from delivery platforms; Pizza Hut operates about 19,974 restaurants worldwide.
Yum Brands announced the sale of Pizza Hut for about $2.7 billion, with roughly $1.5 billion going to private equity firm LongRange Capital for Pizza Hut outside mainland China and about $1.2 billion going to Yum China for the China stores; after taxes and fees, Yum expects around $2.3 billion in net proceeds, plus an potential $75 million earn‑out by 2030 for LongRange and about $85 million in 2026 transaction costs. The deal ends Pizza Hut’s ties to Taco Bell and KFC and comes as Domino’s has gained share and third‑party delivery apps have cut into Pizza Hut’s sales; the sale is designed to maximize shareholder value and give Pizza Hut an ownership structure suited to its markets.