Pizza Hut to sell itself? Yum! Brands, Inc. (YUM.US) is rumored to want to divest its "chicken ribs" business, with private equity newcomer LongRange obtaining exclusive negotiation rights.

According to sources familiar with the matter, Yum! Brands, Inc. (YUM.US) is in exclusive negotiations to sell its Pizza Hut chain business to LongRange Capital. One source indicated that LongRange recently obtained exclusive negotiation rights with YUM Brands, beating out other bidders including Sycamore Partners. The sources stated that both parties are progressing discussions regarding a potential deal, which could be reached within a few weeks. However, it is not guaranteed that a deal will be reached. Pizza Hut's financial struggles: Last year, Yum! Brands stated that after several years of trying to revive the stagnant sales of this chain restaurant, the company was conducting a strategic evaluation of Pizza Hut. Data shows that since 2019, Pizza Hut's share of Yum! Brands' total revenue has been declining year after year, dropping from over 18% six years ago to around 12% in 2025. During this period, Pizza Hut's sales have hovered around just over $1 billion, while Yum! Brands' revenue increased by about 47% last year, reaching $8.2 billion. Yum! Brands' stock price has dropped by 2.2% this year. The Kentucky-based company also owns other chain restaurants such as KFC and Taco Bell, with a market value of approximately $41 billion. LongRange Capital is a private equity investment firm founded in 2019. Its founder Bob Berlin has extensive experience in the food industry, having led investments in Arby's while working at the Bob Evans group. The company currently owns 24 Hour Fitness and a ski resort company called Alpin Unlimited, which is an investor in the KitzSki ski resort in Kitzbuhel, Austria. Pizza Hut has attracted interest from potential buyers such as Sycamore, Apollo Global Management Inc., and LongRange.