YUM
Yum Brands in talks to divest Pizza Hut to LongRange Capital report
Article Summary
HOLD- Brands (NYSE: YUM) is reportedly in exclusive negotiations to sell Pizza Hut to LongRange Capital, according to a Reuters report, with discussions said to be at an advanced stage and could result in an agreement in coming weeks.
- Pizza Hut's comparable sales in the US fell for ten consecutive quarters, and it accounted for 12% of Yum's total revenue in 2025, with Yum!
- Brands reviewing strategic options including a potential sale last year.
- The possible sale comes as fast-food operators face softer demand as some consumers opt for healthier choices, inflation and weaker consumer sentiment have further hit restaurant spending, adding pressure on major US pizza chains already dealing with elevated commodity and input costs.
- The situation unfolds against backdrop of increased deal activity in US restaurant sector where several smaller chains have exited public markets including Denny's, Potbelly and California Pizza Kitchen, with Papa John's International exploring a sale to Irth Capital Management.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.7% | 25% | 35.0 ptsBelow Screener (9.7%) - Weak growth |
| EPS Growth Next 5Y ? | 11.4% | 25% | 35.0 ptsBelow Screener (11.4%) - Modest outlook |
| Target Price Upside ? | 14.1% | 20% | 50.0 ptsMeets Minimum (14.1%) - Target: $174.58 vs Current: $153.01 |
| Gross Margin % ? | 45.7% | 15% | 60.0 ptsSolid (45.7%) - Decent margins |
| Drawdown from 52-Wk High ? | -9.7% | 15% | 20.0 ptsBarely a Dip (-9.7%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About YUM
- Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises traditional and non-traditional quick service restaurants in the United States, China, and internationally.
- The company operates in four segments: KFC Division, Taco Bell Division, Pizza Hut Division, and Habit Burger & Grill Division.
- It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and Habit Burger & Grill brands, which specialize in chicken, Mexican-style food and pizza categories, made-to-order chargrilled burgers, sandwiches, and other products.
- The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum!
- Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.