LOUISVILLE, Kentucky: Yum Brands is in exclusive negotiations to sell its Pizza Hut business to private-equity firm LongRange Capital, according to a source familiar with the matter, as the restaurant chain continues to grapple with weak sales and shifting consumer habits.

The source said the two sides are making progress in discussions and could reach an agreement within the next several weeks, though there is no certainty that a deal will be completed.

LongRange Capital declined to comment, while Yum Brands did not immediately respond to requests for comment.

The potential sale comes at a challenging time for the fast-food industry. Restaurant operators have been dealing with softer demand as rising inflation and weaker consumer sentiment prompt diners to cut back on discretionary spending.

The sector is also facing longer-term shifts in eating habits, with growing use of GLP-1 weight-loss drugs encouraging some consumers to choose healthier food options.

Yum Brands revealed last year that it was reviewing "strategic options" for Pizza Hut, including a possible sale, as the pizza chain struggled to match the performance of the company's other major brands, particularly Taco Bell.

Pizza Hut accounted for roughly 12% of Yum Brands' total revenue in 2025, but U.S. comparable sales at the chain have declined for 10 consecutive quarters.

Reuters reported in April that several firms, including LongRange Capital, Sycamore Partners and Apollo Global Management, were interested in acquiring the business.

News of the exclusive talks lifted investor sentiment, with Yum Brands shares rising about 3% in extended trading. Bloomberg News first reported the latest development.

The discussions reflect a broader wave of consolidation in the U.S. restaurant industry, where rising costs and weaker demand have pushed several chains toward private ownership.

In recent years, brands including Denny's, Potbelly and California Pizza Kitchen have left public markets amid mounting operational pressures.

Meanwhile, another major pizza chain, Papa John's International, has also been exploring strategic alternatives. It was reported earlier this month that investment firm Irth Capital Management was working with Papa John's largest U.S. franchisee on a potential deal to take the company private.