Yum Brands is in exclusive talks to sell Pizza Hut to private equity firm LongRange Capital, as the struggling pizza chain continues to lag behind the group’s faster-growing brands.

The KFC and Taco Bell owner is understood to be progressing discussions with LongRange over a potential deal, which could be agreed within several weeks.

However, a source familiar with the matter told Reuters there was no guarantee that a sale would be completed.

LongRange declined to comment, while Yum Brands did not immediately respond to a request for comment.

The potential sale comes as Pizza Hut continues to face pressure from weaker demand across the fast-food sector, with consumers cutting back on eating out amid inflationary pressures and softer sentiment.

The wider restaurant industry has also been affected by the rise of GLP-1 weight-loss drugs, which have encouraged some consumers to shift towards healthier food choices.

Yum Brands said last year it was reviewing “strategic options” for Pizza Hut, including a possible sale, as the chain struggled to keep pace with Taco Bell and KFC.

Pizza Hut accounted for 12 per cent of Yum’s total revenue in 2025, but US comparable sales have now declined for 10 consecutive quarters.

By contrast, Taco Bell and KFC have both reported five consecutive quarters of comparable sales growth.

Reuters reported in April that LongRange was among a group of potential bidders for Pizza Hut, alongside Sycamore Partners and Apollo Global Management.

Shares in Yum Brands rose around 3 per cent in extended trading following reports of the talks.

The potential deal follows a wave of activity across the US restaurant sector, with several chains leaving the public markets as operators contend with higher costs and weaker dining-out demand.

Denny’s, Potbelly and California Pizza Kitchen have all been involved in recent dealmaking, while Papa John’s has also been exploring a sale of the business.

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