Yum! Brands initiates review of strategic options for Pizza Hut

Yum! Brands (YUM) announced the initiation of a formal review of strategic options for the Pizza Hut brand. The intent is for Pizza Hut to reach its full potential for the benefit of its franchisees, consumers, and employees and to maximize value for Yum! shareholders. The review will explore a range of strategic options while Pizza Hut continues to focus on near-term business imperatives. “Pizza Hut is a beloved global brand and industry innovator that connects people through the joy of pizza, and we are confident in its long-term future,” said Chris Turner, Chief Executive Officer, Yum! Brands Inc. “Pizza Hut has many strengths – including deep consumer love, a global footprint, strong growth in many markets, a talented team, and an increasingly powerful technology platform.” “The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” Turner continued. “To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.” Yum! Brands, Inc. has not set a deadline or definitive timetable for the completion of the strategic options review, and there can be no assurance this review will result in any specific outcome or transaction. The Company does not intend to comment or make further announcements unless it determines that further disclosure is appropriate or necessary. Yum! Brands, Inc., has retained Goldman Sachs and Barclays as financial advisers for this strategic review.