Pizza Hut’s corporate parent Yum Brands has sold the chain’s U.S. business for $1.5 billion to private equity group LongRange Capital. This firm also owns 24 Hour Fitness and a funeral casket and urn maker, among other companies.

Private Equity Involvement

Private equity firms have come to fill a gap in the American business landscape, taking over companies often in some kind of distress and subsequently making tough business decisions without having to worry about daily stock price fluctuations.

Pizza Hut’s sales have stagnated for at least 20 years, according to research group Technomic, while other chains, especially Domino’s, have built up market share. Investors have for years called Pizza Hut a figurative albatross around Yum Brands share price — and it simply became clear that management no longer had the bandwidth, resources or patience to devote to a turnaround.

LongRange Capital may have its work cut out for it, as the entire pizza category has come under pressure from changing consumer habits, household financial pressures and the rise of new food options.

Original reporting: Dallas TX News (HLL/CB) — read the source article.