The parent company of Pizza Hut is reportedly engaged in advanced negotiations to sell the popular pizza chain to LongRange Capital, according to a source with knowledge of the discussions.
The talks between Yum Brands and the investment firm are progressing toward a potential agreement that could be finalized within the coming weeks, the source revealed on Friday. However, the source cautioned that reaching a final deal remains uncertain.
Representatives from both Yum Brands and LongRange declined to provide immediate comment when contacted about the reported negotiations.
Stock prices for Yum Brands, the company that also operates KFC, climbed approximately 4% during after-hours trading once news of the potential sale emerged. The development was initially reported by Bloomberg News.
The reported sale discussions occur as the quick-service restaurant sector faces ongoing challenges with weakened consumer demand. The growing popularity of GLP-1 weight-loss medications has influenced dining habits, with customers increasingly choosing healthier meal options.
Economic pressures from inflation and deteriorating consumer confidence, which hit record lows in May, have further intensified these challenges. These factors are causing customers to reconsider their dining-out frequency. Pizza chains across the United States are additionally confronting intense market competition and escalating ingredient prices.
