Pizza Hut, the struggling restaurant chain, will be sold for $2.7 billion by parent company Yum Brands. Yum Brands announced in February that it was considering selling Pizza Hut and planned to close 250 U.S. restaurants due to outdated stores and growing competition.
Background
Pizza Hut was founded in 1958 in Wichita, Kansas, and was acquired by PepsiCo in 1977. PepsiCo spun off its restaurant division, which became Yum Brands, in 1997. Private equity firm LongRange Capital is buying Pizza Hut, excluding the mainland China business, for about $1.5 billion. The mainland China Pizza Hut will be purchased by Yum China Holdings Inc. for approximately $1.2 billion.
Yum Brands CEO Chris Turner stated that under LongRange and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry. Yum Brands, whose other brands include KFC and Taco Bell, began a strategic review to explore options for Pizza Hut in November, with the chain reporting declining sales at comparable stores.
Original reporting: NBC6 Miami — read the source article.
