Yum Brands is reportedly in exclusive talks to sell Pizza Hut to private-equity firm LongRange Capital, according to a report citing a source familiar with the matter.

The potential transaction would mark a significant shift for one of America’s most recognizable pizza chains and underscores growing consolidation across the restaurant industry as operators navigate slowing consumer demand and higher costs.

The discussions could result in a deal within several weeks, although no agreement has been reached and there is no guarantee the talks will lead to a transaction, Reuters reported Friday.

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Yum said last year it was evaluating strategic alternatives for Pizza Hut, including a potential sale, as the chain worked to reverse a prolonged sales slump.

A Pizza Hut restaurant in New York. (Michael Nagle/Bloomberg via Getty Images)

According to Reuters, Pizza Hut generated about 12% of Yum’s revenue in 2025 and has reported declining U.S. comparable sales for 10 straight quarters.

Reuters previously reported that LongRange Capital was among several firms interested in acquiring Pizza Hut. Apollo Global Management and Sycamore Partners were also reported to have explored potential bids for the chain.

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Yum said last year it was evaluating strategic alternatives for Pizza Hut. (Robert Gauthier/Los Angeles Times via Getty Images)

The reported talks come as restaurant companies face softer consumer demand and elevated operating costs, creating potential turnaround opportunities for investors focused on established brands.

Pizza Hut rival Papa John’s has also drawn acquisition interest. Reuters reported earlier this month that investment firm Irth Capital Management was working with the company’s largest U.S. franchisee on a proposal to take the pizza chain private.

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Shares of Yum Brands rose roughly 3% in extended trading following reports of the discussions. Shares are down more than 5% year to date.

FOX Business has reached out to Yum Brands and LongRange Capital for comment.

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The potential Pizza Hut sale highlights how major restaurant brands are increasingly evaluating strategic transactions to improve performance and shareholder returns in a challenging operating environment.