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Yum Brands Launches Formal Review of Pizza Hut, Weighing Possible Sale

The move follows seven straight quarterly declines at Pizza Hut, including a 7% U.S. slide.

Overview

  • Yum retained Goldman Sachs and Barclays to advise on options that could include a sale, a joint venture or a minority stake sale.
  • The company set no timetable for the process and warned the review may not result in a transaction.
  • Pizza Hut has posted seven consecutive quarters of declining comparable sales, including a 1% drop in Q3 and a 7% decline in the U.S.
  • The chain operates nearly 20,000 restaurants in more than 100 countries, about 6,500 in the U.S., and contributes roughly 11% of Yum’s operating profit.
  • Taco Bell and KFC posted same-store sales growth of 7% and 3% in the quarter, while analysts note Pizza Hut’s U.S. market share fell to 18.7% from 22.6% since 2019.