Overview
- Yum! Brands said it has begun a formal, adviser-led process to evaluate options for Pizza Hut, cautioning there is no set timetable and that a transaction may not occur.
- Potential outcomes under consideration include an outright divestiture, a joint venture or the sale of a minority stake, according to coverage of the company’s announcement.
- Pizza Hut’s same-store sales fell 1% in the third quarter, including roughly a 6% to 7% drop in the U.S., while Taco Bell rose 7% and KFC increased 3%.
- The company retained Goldman Sachs and Barclays to advise on the review and said it does not plan further public updates until necessary.
- Pizza Hut operates nearly 20,000 restaurants in more than 100 countries with heavy U.S. exposure, and Yum shares gained nearly 7% after the news.