Pizza Hut’s parent company, Yum Brands, announced on Tuesday that it is selling the iconic brand to private equity firm LongRange Capital for around $1.5 billion. The deal excludes the pizza chain's locations in Mainland China, with Yum China acquiring those in a separate transaction for about $1.2 billion, per CNBC.
The deal comes as Pizza Hut has struggled for a few years, which has negatively impacted Yum’s financial performance. This comes as Domino’s Pizza took a large market share from Pizza Hut, which, along with third-party delivery apps like DoorDash, has taken sales from the chain.
In November, Yum said it was exploring what it referred to as "strategic options” for Pizza Hut. On Tuesday, the chain said they determined that selling the brand would yield the highest overall value for its shareholders.
