Pizza Hut owner Yum Brands is in exclusive discussions to sell the fast food chain to private equity firm LongRange Capital, a source close to the matter told Reuters.
It is thought a potential deal between Yum Brands and Connecticut-based LongRange Capital could take shape in several weeks, according to the source. However, they added there is no guarantee a deal will be made.
In November, Yum Brands unveiled plans to initiate a formal review of strategic options for the Pizza Hut brand, which has suffered declining profits and sales.
For the second quarter to 30 June 2025, Pizza Hut suffered a 15% fall in profit to $80m (£60.2m) as system sales were down 1%. The company attributed the decline to growing competition in the sector and weak consumer spending.
Its most recent financial update, for the first quarter to 31 March 2026, saw operating profit decline further to $64m (£47.5m).
In its latest bid to appeal to consumers, Pizza Hut UK upgraded its Hut Rewards loyalty programme to reward customer frequency.
Customers can earn stamps that can be redeemed for treats with every delivery or collection order. The March launch came as the pizza giant looks to evolve its offer “beyond a spend-based model”.
Pizza Hut is not the only pizza delivery player to have struggled as of late. In the second half of 2025, lower volumes pushed down profits at Domino’s Pizza Group, with underlying EBITDA 6.6% lower than in 2024, at £133.9m. Pre-tax profits declined 35% to £81.1m as the chain battled a challenging consumer backdrop and rising costs.
However, results at Domino’s picked up in the first quarter of 2026. Total system sales increased by 5.8% while total orders rose by 2.3%, as the pizza giant expanded its Chick ‘N’ Dip chicken brand to all stores in the UK and Republic of Ireland.