The owner of Pizza Hut made a surprising decision.

Yum Brands is in the process of selling its popular pizza chain Pizza Hut, amid ongoing business difficulties.

Yum Brands is in exclusive negotiations to sell its Pizza Hut pizza restaurant chain to private equity firm LongRange Capital. Photo: Bloomberg .

Yum Brands is in exclusive negotiations to sell its Pizza Hut restaurant chain to private equity firm LongRange Capital, according to a Reuters source.

Sources indicate that both sides are making progress in discussions about a potential deal and could reach an agreement within the next few weeks.

LongRange Capital declined to comment to Reuters ' request, while Yum Brands has also not responded to the information.

The move by the owner of the famous pizza chain comes as the fast-food industry faces a prolonged period of weak consumer demand, as the increasing use of GLP-1 weight-loss drugs leads consumers to opt for healthier foods.

Furthermore, high inflation and declining consumer confidence are also putting pressure on consumers, forcing many to think more carefully before eating out. This is particularly challenging for large pizza chains in the US, which are already facing high ingredient costs.

Last year, Yum Brands said it was considering strategic options for Pizza Hut, including the possibility of selling the brand, as the pizza chain struggled to maintain the same growth rate as other brands in the group such as Taco Bell.

Pizza Hut's comparable sales in the US have declined for 10 consecutive quarters, while the brand is expected to contribute approximately 12% of Yum Brands' total revenue in 2025.

Besides LongRange Capital, investment funds such as Sycamore Partners and Apollo Global Management are also among those interested in acquiring the restaurant chain.

The US food service industry is currently witnessing a strong wave of mergers and acquisitions (M&A). Many small and medium-sized restaurant chains are going public due to rising input costs and declining demand for dine-in services. Some notable names include Denny's, Potbelly Corporation, and California Pizza Kitchen.

Not only Pizza Hut, but Papa John's International is also looking to sell its business. In May, investment fund Irth Capital Management partnered with Papa John's' largest franchisee in the US to facilitate a deal to take the company off the stock exchange.

Although Pizza Hut remains one of the world's largest pizza brands with tens of thousands of stores, its business performance in the US has been declining for an extended period. This has led Yum Brands to consider divesting in order to focus more on faster-growing, higher-margin brands like Taco Bell.

In the Asian market, since 1987, Jardine Restaurant Group (JRG) has successfully developed the Pizza Hut brand in Hong Kong (China), Macau, Myanmar, Taiwan (China), and Vietnam, with products adapted to the tastes and cultures of each market.

In Vietnam, Pizza Hut is one of the leading pizza brands, with approximately 130 stores located across all three regions and employing over 3,500 people.

Currently, Pizza Hut has approximately 130 stores in Vietnam. Photo: Pizza Hut Signature.

Pizza Hut was introduced to the Vietnamese market by IFB Holdings (Vietnam) and Jardine Restaurant Group. In August 2005, Pizza Vietnam Co., Ltd. was granted an investment license, but it wasn't until January 2007 that the first Pizza Hut restaurant in Vietnam opened at Diamond Plaza Shopping Mall (Ho Chi Minh City).

After bringing Pizza Hut to Vietnam in 2005 together with IFB Holdings, Jardine Restaurant Group officially took over and owned 100% of the brand's operations in Vietnam from 2011.

According to a report by Measurable AI, Pizza Hut's market share in the on-demand delivery segment accounts for approximately 23% of online pizza delivery sales in Vietnam.

However, amidst fierce competition in the domestic market, other international pizza chains like Domino's and Vietnamese pizza brands like Pizza 4P's are putting considerable pressure on Pizza Hut to maintain its revenue and profit growth rate.

To differentiate itself, starting in late 2023, the brand launched the Pizza Hut Signature restaurant chain, notably with branches in Nguyen Thi Thap (Ho Chi Minh City), Phan Xich Long (Ho Chi Minh City), and Lieu Giai ( Hanoi ). Each restaurant is designed with its own unique concept and menu, distinct from other branches in the system.

Source: https://znews.vn/ong-chu-pizza-hut-dua-ra-quyet-dinh-bat-ngo-post1656072.html