Pizza Hut Is Being Delivered To Private Equity
Parent company Yum Brands announced yesterday that it is selling Pizza Hut for $2.7 billion in two transactions: Private equity firm LongRange Capital is acquiring operations outside of mainland China for $1.5 billion, while the rest will go to Yum China for $1.2 billion.
It’s the latest domino (sorry) to fall in the decline of the chain that was the pinnacle of sit-down pizza consumption when MTV started airing music videos. Pizza Hut’s share of Yum revenue has dwindled annually since 2019, per Bloomberg. Meanwhile, rival Domino’s has flourished, and delivery apps like Uber Eats and DoorDash have cut into the Hut’s market share.
LongRange Managing Partner Bob Berlin said it’s acquiring an internationally known brand with a loyal customer base. Other companies in LongRange’s portfolio include 24 Hour Fitness and funeral casket company Batesville, two businesses you may need if you eat too much pizza.
By selling Pizza Hut after months of exploring its options, Yum is shedding an anchor tied around its bottom line and focusing on its KFC and Taco Bell properties, proving there are always two standouts destined to wind up together in a throuple.
Pizza party: Yum Brands’ stock jumped after the news broke and finished up 2% yesterday.—DL
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