Private equity’s long-running bet on pizza is facing another test. LongRange Capital has completed its $1.5 billion acquisition of Pizza Hut’s operations outside mainland China from Yum! Brands, taking control of a global chain with more than 15,500 restaurants across more than 100 countries. The deal closed Sept. 1, with Yum! retaining the potential to receive another $75 million based on Pizza Hut’s performance through 2030.
The transaction puts one of the world’s best-known pizza brands into private equity hands at a challenging moment for the industry.
Pizza Hut generated roughly $10 billion in systemwide sales, according to LongRange, but its non-China business has struggled with weaker consumer demand, higher costs, and intense competition. U.S. comparable-store sales declined for 10 consecutive quarters, while Yum! announced plans to close 250 U.S. Pizza Hut locations in the first half of 2026, Reuters reported.
Pizza’s Mixed PE Track Record
Pizza has long appealed to private equity because of its recognizable brands, recurring demand and franchise-heavy business models. But the results have been mixed.
California Pizza Kitchen filed for bankruptcy in 2020 after its acquisition by Golden Gate Capital, while Sbarro went bankrupt after being acquired by MidOcean Partners. Round Table Pizza has also experienced bankruptcy both before and after private-equity ownership, Axios reported.
There have been successes, most notably Domino’s, which used technology, delivery, and franchising to build a highly scalable business. The company’s shift toward digital ordering and a more asset-light franchise model helped turn the chain into one of the industry’s strongest performers.
A Tougher Pizza Market
Longrange is taking over as the pizza industry faces a tougher consumer environment. U.S. pizza sales grew less than 1% in 2024 and declined slightly in 2025, according to Technomic data cited by The Associated Press. Pizza Hut’s U.S. sales fell 8.2% last year.
LongRange has said it plans to take a hands-on approach focused on Pizza Hut’s guests, franchisees and employees. The firm’s founder, Bob Berlin, previously worked on a turnaround of Arby’s while at Baupost.
The broader strategy is familiar: buy an underperforming brand, improve operations, invest in the customer experience, and use franchising to drive growth. Pizza Hut isn’t the only pizza chain attracting private-equity interest.
Irth Capital pursued Papa John’s this year with a proposal valuing the company at roughly $1.5 billion. Papa John’s ultimately rejected a near-term sale and opted for an internal transformation after North American comparable sales fell 8.3% in the second quarter.
The comparison highlights the challenge facing LongRange. Private equity investors still see value in pizza, but the industry’s struggles show that a recognizable brand alone isn’t enough. The real test is whether LongRange can turn around a brand that has been losing customers for years.
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