Yum Brands announced the sale of its Pizza Hut restaurant chain for $2.7 billion.
According to Reuters, the deal is driven by intensifying competition in the fast-food market and cautious consumer spending.
Pizza Hut's China business will be acquired by Yum China for $1.2 billion. The remaining operations will be sold to investment firm LongRange Capital for $1.5 billion.
Yum Brands had begun exclusive talks with LongRange Capital in May and previously indicated it was exploring options for Pizza Hut due to its slower growth compared to other brands like Taco Bell.
Demand in the fast-food sector continues to weaken, while ingredient costs rise for pizza chains in the US.
Pizza Hut currently operates 6,500 restaurants in the US, making it the second-largest pizza chain. Last year, its US sales reached $5.6 billion. Globally, there are about 20,000 Pizza Hut locations.
