US pizza chains face weak demand as inflation, high costs and GLP-1 drugs push healthier eating
Yum Brands said on Tuesday it would sell its Pizza Hut chain for $2.7 billion. as the unit struggles with stiff competition in the fast-food market and cautious consumer spending.
Pizza Hut in Mainland China will be acquired by Yum China for $1.2b. while the rest of the business will go to private equity firm LongRange Capital for $1.5b, the company said.
Rising inflation. elevated commodity costs have weighed on US pizza giants already facing sustained demand weakness, as growing adoption of GLP-1 weight-loss drugs encourages consumers to choose healthier foods.
Last year, Yum Brands said it was exploring strategic options for the chain after several quarters ofsales decline. Pizza Hut accounted for about 12% of Yum's total revenue in 2025.
The sale follows Yumentering exclusive talkswith LongRange in May. as the unit also fell behind Yum's other fast-casual dining brands, such as Taco Bell.
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"These transactions enable Yum! to be a more focused company," Yum Brands CEO Chris Turner said.
Pizza Hut was acquired by PepsiCo in 1977. spun off in 1997 alongside KFC and Taco Bell to form a restaurant company that later took the name Yum Brands in 2002.
Shares of Yum, which will now be left with just its Taco Bell. KFC chains, were up about 1% in premarket trading.
Yum China Holdings, a Shanghai-based spin-off of Yum Brands, owns. franchises more than 18,000 stores in the country, including roughly 13,000 locations for KFC.
Reutersreportedin April that LongRange, Sycamore Partners and Apollo Global Management, among others, were vying for Pizza Hut.
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