Pizza Hut, with 36 Long Island locations, to be sold for $2.7 billion as consumers cut back on spending
A Pizza Hut in Huntington Station Tuesday. Credit: Neil Miller
Pizza Hut will be sold for $2.7 billion as the chain, with 36 locations on Long Island, struggles amid consumers cutting back on spending and growing competition from restaurants selling cheaper food.
Pizza Hut in mainland China will be sold to Yum China Holdings Inc. for $1.2 billion, while the rest of the chain will be sold to LongRange Capital, a private equity firm in Stamford, Connecticut, for $1.5 billion, Pizza Hut’s parent company, Yum Brands Inc., announced Tuesday.
"Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," Chris Turner, CEO of Yum Brands, said in a statement.
The sales of Pizza Hut are expected to close in the third quarter of this year, pending regulatory approvals, according to the Louisville, Kentucky-based parent company.
At this time, there are no plans to close any Pizza Hut locations due to the sales, spokeswoman Lori Eberenz said in an email Tuesday.
Yum Brands Inc. and its subsidiaries franchise or operate more than 63,000 restaurants in 155 countries and territories under four brands, including KFC, Taco Bell and Habit Burger & Grill.
There are 19,944 Pizza Huts in North America, Asia, Europe, Africa and Latin America, including more than 6,000 in the United States.
The 36 Pizza Huts on Long Island include locations in Bay Shore, Copiague, Lindenhurst, Melville, Medford and Roslyn Heights. Some of those are inside convenience stores or Target stores.
About 99% of Pizza Huts are franchises, Eberenz said.
Pizza competitors make gains
The first Pizza Hut was opened by two Wichita State University students, brothers Dan and Frank Carney, in Wichita, Kansas, in 1958. By 1971, Pizza Hut was the largest pizza chain in the world in both the number of restaurants and sales.
Pepsico Inc. acquired Pizza Hut in 1977, and then spun off its restaurant division, including KFC and Taco Bell, in 1997 to focus on its core soda and snack businesses. The spinoff formed Yum Brands.
Pizza Hut's market share has eroded significantly from its peak in the 1990s, as other pizza chains have made gains, said David Henkes, senior principal at Technomic, a Chicago-based restaurant industry research firm.
“Domino's has dominated delivery with better technology, consistent execution, strong value perception, and higher average unit volumes. Little Caesars excels at ultra-cheap options, while Papa John's and others compete on quality or deals,” Henkes said in an email Tuesday.
Also pizza prices have risen sharply since 2022, making the pies less affordable for consumers, who are cutting back on dining out or seeking better deals as they face more economic pressures, he said.
Pizza Hut, which built its brand on sit-down family restaurants with salad bars and table service, also has stalled when it comes to offering the convenience that today’s consumer is seeking, Henkes said.
“More recently, consumer habits have shifted toward convenience, accelerated by the pandemic. The chain pivoted to more delivery/carryout formats, but lagged behind pure-play delivery leaders like Domino's,” he said.
In the first quarter of this year, sales at U.S. Pizza Huts open at least one year declined by 4%, compared with the same period last year. Annually, sales at U.S. Pizza Huts open at least a year were down 5% in 2025, compared with 2024.
Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.
