Pizza Hut, the struggling restaurant chain, will be sold for $2.7 billion by its parent company Yum Brands. The chain has faced challenges with outdated stores and growing competition. Founded in 1958 in Wichita, Kansas, Pizza Hut was acquired by PepsiCo in 1977 and later spun off as part of Yum Brands in 1997.

New Ownership

Private equity firm LongRange Capital is buying Pizza Hut, excluding the mainland China business, for approximately $1.5 billion. The mainland China Pizza Hut will be purchased by Yum China Holdings Inc. for about $1.2 billion. According to Yum Brands CEO Chris Turner, the new ownership will bring deep expertise in the restaurant industry and position Pizza Hut for future growth.

Yum Brands, which also owns KFC and Taco Bell, began a strategic review of Pizza Hut in November due to declining sales at comparable stores. Despite efforts to revitalize the brand, Pizza Hut has become the weak link in Yum’s portfolio, according to Neil Saunders, managing director of GlobalData.

Original reporting: NBC10 Boston — read the source article.