Yum Brands Eyes $3.6–$4.3 Billion Pizza Hut Sale to LongRange Capital
YUM•Yum Brands is in exclusive advanced-stage talks to sell Pizza Hut to LongRange Capital for an estimated $3.6–$4.3 billion, with agreement possible in weeks. The sale would cut net long-term debt from $9.3 billion to about $5.3 billion, lower leverage to 1.7x EBITDA and free cash for buybacks and dividends.
1. Exclusive Sale Talks to LongRange Capital
Yum Brands has entered exclusive negotiations to divest its Pizza Hut business to private equity firm LongRange Capital in an advanced-stage deal valued at $3.6–$4.3 billion, with a potential agreement expected in the coming weeks but no guarantee of completion.
2. Debt Reduction and Capital Allocation
Proceeds from the sale would lower Yum’s net long-term debt from $9.3 billion to approximately $5.3 billion, reducing leverage to around 1.7x trailing-twelve-month EBITDA and freeing cash for strategic uses such as M&A, share buybacks and dividend increases.
3. Pizza Hut Performance Trends
Pizza Hut’s U.S. comparable sales have declined for ten straight quarters, and the chain accounted for 12% of Yum’s total 2025 revenue as the brand grapples with softer consumer demand, higher inflation and rising commodity costs.
