Yum Brands said on Tuesday it would sell its Pizza Hut chain for $2.7 billion, as the ​unit struggles with stiff competition in the fast-food market ‌and cautious consumer spending.

Pizza Hut in Mainland China will be acquired by Yum China for $1.2b, while the rest of the business will go to ​private equity firm LongRange Capital for $1.5b, the company said.

Rising ​inflation and elevated commodity costs have weighed on US pizza giants already ⁠facing sustained demand weakness, as growing adoption of GLP-1 weight-loss ​drugs encourages consumers to choose healthier foods.

Last year, Yum Brands said ​it was exploring strategic options for the chain after several quarters of sales decline. Pizza Hut accounted for about 12% of Yum's total revenue in 2025.

The sale ​follows Yum entering exclusive talks with LongRange in May, as the unit also ​fell behind Yum's other fast-casual dining brands, such as Taco Bell.

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"These transactions enable Yum! ‌to ⁠be a more focused company," Yum Brands CEO Chris Turner said.

Pizza Hut was acquired by PepsiCo in 1977 and spun off in 1997 alongside KFC and Taco Bell to form a restaurant ​company that later ​took the ⁠name Yum Brands in 2002.

Shares of Yum, which will now be left with just its Taco ​Bell and KFC chains, were up about 1% in ​premarket ⁠trading.

Yum China Holdings, a Shanghai-based spin-off of Yum Brands, owns and franchises more than 18,000 stores in the country, including roughly 13,000 ⁠locations for ​KFC.

Reuters reported in April that LongRange, ​Sycamore Partners and Apollo Global Management, among others, were vying for Pizza Hut.