The world’s best-known pizza brand under new private-equity ownership, and how to separate a strong Pizza Hut lease from a risky one, from a buyer’s broker who has closed Pizza Hut deals.
A Pizza Hut NNN property is usually a small freestanding restaurant, averaging about 2,650 square feet on three-quarters of an acre, leased on a NNN or absolute NNN basis. Newer stores focus on delivery and carryout, while older ones are the classic red-roof dine-in buildings. On September 1, 2026, Yum! Brands completed the sale of Pizza Hut (outside mainland China) to the private-equity firm LongRange Capital for about $1.5 billion, so Yum’s credit no longer stands behind Pizza Hut.
About 99% of Pizza Huts are franchised, so the lease is backed by a franchise operator. U.S. sales have declined for several years, and about 250 U.S. closures were planned for the first half of 2026. Solid Investments FL has represented buyers on Pizza Hut properties, including Taco Bell / Pizza Hut restaurants in Melbourne, Florida, and helps investors judge the operator, the store and the real estate before buying on a 1031 exchange. Our buyer representation is always free to you.
| Tenant | Almost always a franchisee operating company; confirm the tenant and every guarantor on each lease |
|---|---|
| Owner | LongRange Capital (private equity) since September 1, 2026; previously Yum! Brands |
| Credit | No public rating for Pizza Hut or its franchisees; Yum’s rating no longer applies |
| Restaurants | About 20,000 worldwide, roughly a third in the U.S.; 99% franchised |
| Recent U.S. trend | U.S. same-store sales down 5% in 2025; about 250 U.S. closures planned in early 2026 |
| Building size | Average about 2,650 SF on about 0.75 acre |
| Typical lease term | Up to 20 years on new leases; many older leases have less time left |
| Lease type | NNN or absolute NNN; fee simple and ground leases both trade |
| Rent increases | Often 10% every 5 years on newer leases |
| Typical cap rate (2026) | About 5.5%–7.0%, depending on the operator, store and term |
| Typical price range | About $1M–$2.5M |
Ownership per Yum! Brands’ September 2026 filing; restaurant counts from Yum’s 2025 annual report. Cap rates and pricing reflect current market conditions and vary by deal.
Private-equity owner LongRange Capital took over in September 2026. New owners often push store closures and lease renegotiations, so stick with proven, profitable stores.
With 99% franchised, your rent is backed by a franchise operator. Read exactly who signs the lease, who guarantees it, and how many units stand behind that guarantee.
Several Pizza Hut franchisees have gone through bankruptcy in recent years. Ask for the operator’s financials and its closure history.
Ask for store-level sales. Rent at 6%–8% of sales is healthy, below 6% is very strong, and around 10% is close to break-even for many operators.
Old red-roof dine-in buildings can be hard to re-lease if they go dark. Newer delivery and carryout stores are smaller and easier to backfill. Check the rent per square foot against local rents.
A good corner with traffic and access is your protection. Many buyers price a Pizza Hut with the land value and a possible re-tenant in mind.
We’ve represented buyers on Taco Bell / Pizza Hut properties in Melbourne, Florida:
Fast Food / QSR
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on Taco Bell / Pizza Hut properties in Melbourne, Florida. We help investors and 1031 exchange buyers find, underwrite and close Pizza Hut properties nationwide, and our buyer representation is free.
Private-equity firm LongRange Capital. Yum! Brands completed the sale of Pizza Hut outside mainland China on September 1, 2026, for about $1.5 billion. Yum's credit no longer stands behind Pizza Hut.
Then you own the land and the tenant owns the building. The main drawback is that you can't depreciate the building. The upsides: the tenant paid to build the store, so it has a strong vested interest in staying; ground rents are typically at or below market; and in most ground leases the building reverts to the landowner when the tenant vacates or the lease ends (verify it in your lease). That's why ground leases usually trade at lower cap rates.
As of 2026, Pizza Hut NNN properties generally trade around 5.5% to 7.0% cap rates, higher than most quick-service brands because of falling U.S. sales, store closures and franchisee-only guarantees.
Almost always franchisee. About 99% of Pizza Huts are franchised, so the lease is guaranteed by the operator's company. Confirm exactly who signs and how many units back the guarantee.
Yes. Pizza Hut planned about 250 U.S. closures in the first half of 2026 after several years of declining U.S. sales. Store-level sales, the operator and the real estate are the best protection.
Start with how many restaurants actually back the guarantee. Next, compare rent to store sales: rent at 6% to 8% of sales is healthy, below 6% is very strong, and around 10% is close to break-even. Finally, compare rent per square foot to local rents in case you ever need to re-lease the building.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed Pizza Hut deals and know where the risks are. Tell us your budget and timeline; our buyer representation is completely free.
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