The historic pizza franchise was divested by KFC and Taco Bell owner Yum! Brands for US$1.5 billion this week, after years of underwhelming sales figures.
The deal sees an estimated 15,600 Pizza Hut locations across more than 100 countries transferred to LongRange Capital.
Pizza Hut’s Chinese operations are not included in the sale, with more than 4,300 restaurants in the country set to be operated independently by Yum China Holdings.
The transaction brings an end to almost 30 years of Pizza Hut ownership by Yum! Brands, which was created as a spin-off from PepsiCo in 1997.
LongRange Capital’s purchase marks the final step in a £2 billion break-up of the global Pizza Hut business, following the $1.2 billion sale of the China business.
Despite the divestment, Yum! Brands could still receive a $75 million windfall if the chain reaches undisclosed performance targets by 2030.
Based in Plano, Texas, Pizza Hut has struggled financially in recent years and has lagged behind the strong growth achieved by sister brands KFC and Taco Bell, prompting a portfolio review by Yum! Brands.
The restaurant chain retains a significant global presence, however, and remains the world’s second-largest pizza franchise by a considerable margin.
“With this transaction complete, Yum! Brands now moves forward as a more focused company with significant opportunities for growth around the world,” said CEO Chris Turner, Yum! Brands.
“Our unmatched digital capabilities and scale and our relentless focus on the future consumer, strengthening restaurant economics and leveraging Byte by Yum! will allow us to accelerate growth and deliver sustainable long-term value for our shareholders.”
