PIZZA HUT acquired by LONGRANGE CAPITAL
Context
Yum! Brands has announced the signing of definitive agreements to divest its entire Pizza Hut business, following a strategic review process initiated in November 2025 to assess the best value-creation options for the brand. After careful consideration, the company has decided to separate Pizza Hut from its portfolio to focus its resources on its other brands and strategic growth priorities. The transaction is structured into two separate deals. Pizza Hut's operations outside of mainland China will be sold to LongRange Capital, while Yum China Holdings will acquire the Pizza Hut business in mainland China. For Yum! Brands, this divestiture marks a significant milestone in the evolution of its portfolio, as the company aims to become a more focused organization centered around its other global brands, including KFC and Taco Bell, while continuing to develop its technological capabilities and digital platforms. The proceeds from the sale are expected to fund strategic investments and a significant share buyback program approved by the board of directors. From LongRange Capital's perspective, the acquisition represents an opportunity to own a global brand with exceptional recognition, but facing challenges related to transformation and growth revival. The fund believes that Pizza Hut will benefit from a dedicated ownership structure, which will provide the necessary financial and operational resources to support its turnaround. This newfound independence is expected to enable the brand to accelerate its adaptation to the evolving fast-food market, particularly in the areas of delivery, digitalization, and network optimization.
PIZZA HUT, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Retail & Consumer sector (11.0x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
Pizza Hut is one of the world's largest restaurant chains specializing in pizza, with a rich history dating back to its founding in 1958 in Wichita, Kansas. Over the decades, the brand has evolved to become an iconic name in the fast-food industry, with a presence in numerous countries worldwide. Pizza Hut offers a wide range of pizzas, sides, desserts, and beverages catering to both individual customers and families. The company's business model is primarily based on a franchise network, enabling the brand to expand its international footprint while relying on local operators. At the time of the transaction, Pizza Hut operated thousands of restaurants globally and was one of the most recognized brands in the fast-food sector. Throughout its history, Pizza Hut has been a pioneer in several industry innovations, particularly in delivery and online ordering. However, from the 2000s onwards, the brand gradually lost market share to competitors such as Domino's and Papa John's, which had more delivery-focused and take-out oriented models. This shift led Pizza Hut to adapt its network by gradually closing some of its traditional restaurants in favor of more streamlined and consumer-centric formats. Despite these challenges, Pizza Hut remains a global brand with a strong reputation and loyal customer base. Its international presence, franchise network, and brand power enable it to maintain a significant position in the global pizza market.
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Historical Financials (USD)
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REFERENCES
Valuation range: EV 1b - 4b USD
Revenue range: 750M - 1.3b USD
EBITDA range: 250M - 500M USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Target: pizza hut
Acquirer: longrange capital