Yum sells Pizza Hut in 2 deals worth $2.7 billion
What's next: Yum expects the sales to close in the third quarter, leaving it focused on KFC and Taco Bell.
Yum Brands is selling Pizza Hut for a combined $2.7 billion, splitting the chain between two buyers as the brand falters in the U.S. but expands in China. Private equity firm LongRange Capital will buy Pizza Hut outside mainland China for about $1.5 billion, while Yum China Holdings will acquire the mainland China business for about $1.2 billion. Yum said it expects the deals to close in the third quarter, subject to regulatory approval. Pizza Hut has struggled with weak U.S. sales, inflation and higher commodity costs, and Yum said in February it planned to close 250 U.S. locations. In China, where Pizza Hut has 4,375 stores, the chain added 207 net new outlets in the first quarter and plans to top 6,000 by 2028.