Newsletter
Bye-bye, Pizza Hut. At least for Yum! Brands.
The company behind KFC, Taco Bell and Pizza Hut has agreed to sell the iconic pizza chain in a two-part deal worth roughly $2.7 billion.
What's happening: Pizza Hut's China business will be acquired by Yum China for $1.2 billion, while the rest of the global business will be sold to private equity firm LongRange Capital for $1.5 billion.
A quick trip down memory lane: Pizza Hut's story began in 1958 when brothers Dan and Frank Carney opened the first outlet in Wichita, Kansas. Just a year later, they were already franchising the concept.
The company went public in 1969 and, by 1971, had become the world's largest pizza chain. It held that crown for decades before losing it to Domino's in 2017.
Pizza Hut's ties with KFC and Taco Bell go back even further. PepsiCo acquired Pizza Hut in 1977, marking its entry into the restaurant business. Over the following decade, Pepsi also bought KFC and Taco Bell.
In 1997, Pepsi spun off its restaurant operations into a separate company called Tricon Global Restaurants, which was later renamed Yum! Brands.
This latest deal officially ends Pizza Hut's decades-long association with KFC and Taco Bell under the same corporate umbrella.
The why: Pizza Hut was once the world's biggest pizza chain. But nearly a decade ago, Domino's overtook it, and the competition has only intensified since then.
The rise of food delivery apps has completely changed how people order food. Customers now have access to hundreds of local pizza brands at the tap of a button, making it much harder for legacy chains to stand out.
Pizza Hut also faced another challenge. It built its reputation as a dine-in restaurant, while consumer preferences shifted rapidly towards delivery and convenience.
Although the company invested heavily to adapt, it struggled to keep pace with rivals. The numbers tell the story. Pizza Hut contributed about 12% of Yum!'s revenue in 2025, but its US business reported declining comparable sales for 10 straight quarters.
The pressure isn't limited to the US either.
Back home, Devyani International, which operates Pizza Hut in India, said during its Q3 earnings call that it has begun shutting underperforming outlets and does not expect to add any net new Pizza Hut stores in 2026.
Any new openings will largely replace loss-making locations, keeping the overall store count broadly unchanged.
The bigger picture: this isn't just about pizza. Across industries, large consumer companies are increasingly trimming their portfolios and focusing on businesses that offer stronger growth prospects.
For Yum!, selling Pizza Hut allows management to sharpen its focus and unlock value for shareholders.
For Pizza Hut, it marks the beginning of a new chapter under owners hoping they can restore some of the magic that once made it the world's most recognisable pizza brand.
