Yum! Brands is reportedly in exclusive negotiations with LongRange Capital over a possible sale of its Pizza Hut business, according to people familiar with the situation. LongRange is said to have obtained an exclusivity agreement after emerging as the leading bidder ahead of other interested parties, including Sycamore Partners.
Those close to the discussions say the two sides are moving forward on terms for a potential deal that could be finalized within the coming weeks. However, sources caution there is no certainty that a transaction will ultimately be completed.
Representatives for Yum, LongRange and Sycamore Partners declined to comment on the reported talks.
The reported sale consideration comes after Yum initiated a strategic review of Pizza Hut last year, following a multiyear effort to restore growth at the pizza chain. Pizza Hut's share of Yum's consolidated revenue has steadily diminished over time. The data cited in reporting shows Pizza Hut accounted for approximately 12% of Yum's revenue in 2025, down from more than 18% in 2019.
During that same span, Pizza Hut's annual revenue hovered just above $1 billion, while Yum's overall revenue expanded by about 47% to reach $8.2 billion last year. Yum, which also owns KFC and Taco Bell, is valued at roughly $41 billion on the market, and its shares have declined about 2.2% so far this year.
LongRange Capital, founded in 2019 by Bob Berlin, was previously associated with investment activities at Baupost Group and was involved in an investment in Arby's, according to reporting. The private equity firm currently owns the fitness chain 24 Hour Fitness and Alpin Unlimited, a company that holds ski resort investments with interests in the KitzSki resort area in Austria.
Reports last month indicated that Pizza Hut had attracted interest from multiple potential buyers, among them LongRange, Sycamore Partners and Apollo Global Management. If a sale proceeds, it would represent one of the more significant strategic moves by Yum in recent memory as the company focuses on strengthening higher-performing brands and expanding its franchise operations.
For Yum, the potential divestiture would reflect an effort to reallocate management attention and capital toward brands that have driven the bulk of the company’s recent revenue growth. For LongRange, acquiring Pizza Hut would add a large-scale restaurant chain to its existing portfolio, which includes consumer-facing businesses in fitness and leisure.
Observers of the situation note that while exclusivity agreements signal advanced negotiations, they do not guarantee a definitive agreement. The parties continue to discuss terms, and outcomes remain uncertain.