Yum Brands is reportedly in exclusive negotiations to sell Pizza Hut to private equity company LongRange Capital.

According to a Reuters report, the discussions are said to be at an advanced stage and could result in an agreement in the coming weeks.

However, the report added there is no certainty that a deal will be finalised, quoting a source familiar with the matter.

The possible sale comes as fast-food operators face softer demand as some consumers opt for healthier choices.

Higher inflation and weaker consumer sentiment have further hit restaurant spending, adding pressure on major US pizza chains already dealing with elevated commodity and input costs.

Yum said last year it was reviewing "strategic options," including a potential sale of Pizza Hut, which has been lagging behind other brands in its portfolio such as Taco Bell.

Pizza Hut’s comparable sales in the US fell for ten consecutive quarters, and it accounted for 12% of Yum’s total revenue in 2025.

In April, Reuters reported that LongRange Capital, Sycamore Partners and Apollo Global Management, among others, had expressed interest in acquiring the business.

The situation unfolds against a backdrop of increased deal activity in the US restaurant sector, where several smaller chains have exited public markets, including Denny's, Potbelly and California Pizza Kitchen.

Papa John's International has also been exploring a sale to investment company Irth Capital Management.

In April, Yum! Brands reported a net income of $432m in Q1 2026, an increase of 71% compared to $253m a year ago.