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3h ago

Yum Brands Starts Strategic Review of Pizza Hut, Weighing Possible Separation

Persistent U.S. sales declines have pushed the company to test whether the brand could perform better outside its portfolio.

Pizza Hut parent company Yum! Brands is exploring a possible sale of the restaurant chain.
Un local de Pizza Hut en Taunton, Massachusetts, el 9 de julio de 2015. (AP Foto/Stephan Savoia, archivo)

Overview

  • Yum hired Goldman Sachs and Barclays to advise on options that could include a sale of Pizza Hut.
  • The company set no deadline for the review and cautioned there is no assurance it will lead to a transaction.
  • Pizza Hut has posted seven consecutive quarterly declines, with U.S. sales down about 7% from January through September across roughly 6,500 locations.
  • The chain operates nearly 20,000 restaurants in more than 100 countries, with China as its second-largest market.
  • Yum shares rose about 6–7% after the announcement, and Pizza Hut accounts for roughly 11% of operating profit versus about 38% from Taco Bell’s U.S. business.