On 16th June, Pizza Hut was sold to two big food giants at a valuation of $1.2 billion. Yum Brands took the decision to focus more on other strong-performing brands and sell Pizza Hut last year in November. The real reason behind selling Pizza Hut to LongRange Capital and Yum China is consistent losses from the last few years. Competitors like Domino's focused on online ordering and quick delivery services, due to which customer behavior shifted towards modern dining experiences. With this decision, Yum Brands would focus on KFC and Taco Bell, which are better-performing brands.
Who Bought Pizza Hut?
LongRange Capital, a private equity firm, acquired Pizza Hut's global business at a $1.5 billion valuation, while Yum China acquired the China franchise business at a $1.2 billion valuation.
What Is The Future of Pizza Hut?
Pizza Hut will run normally across the globe, and investors will invest now in building delivery infrastructure, branding, and customer support.
|