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Pizza Hut, the 68-year-old chain that has long struggled with growing competition and outdated restaurants, will be sold for $2.7 billion by parent company Yum Brands.

Yum Brands said Tuesday that the private equity firm LongRange Capital will buy Pizza Hut, excluding the mainland China business, for about $1.5 billion.

In mainland China, Pizza Hut will be purchased by Yum China Holdings Inc. for approximately $1.2 billion, the company said. China is Pizza Hut’s second-largest market outside the U.S., accounting for 19% of sales. Yum China Holdings Inc. spun off from Yum Brands and became an independent company in 2016.

Yum Brands, which also owns KFC and Taco Bell, began to explore its options for Pizza Hut in November. Last year, Yum Brands’ global sales rose 5% but Pizza Hut’s sales fell 2%.

In February, Yum Brands announced plans to close 250 U.S. Pizza Hut locations. Pizza Hut had 19,974 restaurants worldwide at the end of last year.

“Pizza Hut has long been the weak link in Yum’s portfolio,” Neil Saunders, managing director of GlobalData, wrote Tuesday. “Despite efforts to revitalize the brand and shut underperforming locations, it has become increasingly clear that pushing the division back into growth will require a level of investment and patience that Yum is just not prepared to commit to.”

Pizza Hut was founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mother to open the store. They chose the name because their sign only had room for eight letters.

Pizza Hut’s familiar red roof debuted in 1969 and by 1971 it was the top pizza chain in the world by sales. PepsiCo acquired Pizza Hut in 1977 but spun off its restaurant division — which became Yum Brands — in 1997.

By the 1980s, Domino’s was the fastest-growing U.S. pizza company, buoyed by its promise of 30-minute delivery. As pizza carryout and delivery grew in popularity, Pizza Hut was saddled with large, dine-in restaurants. In 2020, even as pizza delivery boomed during the COVID-19 pandemic, Pizza Hut closed 300 U.S. restaurants.

The chain has been further pinched in recent years by the growth of DoorDash, Uber Eats and other restaurant delivery companies which marketed access to a slew of cuisines besides pizza.

U.S. pizza sales have slowed considerably since the pandemic, growing less than 1% in 2024 and falling less than 1% in 2025, according to Technomic, a restaurant consulting company. But Pizza Hut performed worse than average, with U.S. sales down 8.2% last year, Technomic said.

By selling Pizza Hut, Yum Brands can focus more on its brands with stronger sales, Yum CEO Chris Turner said.

“Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry,” Turner said in a statement.

Connecticut-based LongRange Capital was founded in 2019 by Bob Berlin, who previously engineered a turnaround at Arby’s when he led private equity investments at The Baupost Group. Berlin said Tuesday he looked forward to working with Pizza Hut’s executive team and franchisees “to drive its next phase of growth.”

“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” Berlin said in a statement.

Asked Tuesday if LongRange planned to close any Pizza Hut locations, the company said it had no comment beyond Berlin’s statement.

Yum Brands, based in Louisville, Kentucky, expects the sale in U.S. and China to close in the third quarter. The company’s stock rose nearly 2% Tuesday.

NEW YORK (AP) — Oil prices sank again Tuesday and dropped below $80 per barrel for the first time since early March, while U.S. stocks drifted near their all-time highs in mixed trading.

The S&P 500 slipped 0.6% and pulled 1.3% below its record set earlier this month. The market was nearly evenly split between stocks rising and falling, and the Dow Jones Industrial Average added 328 points, or 0.6%, to set a record for the second straight day. But drops for some influential tech stocks pulled the Nasdaq composite down 1.2%.

Stocks that had benefited from the boom in artificial-intelligence technology weighed on the market in particular following vicious swings over the last couple weeks.

They’ve been leading the market up and down amid worries that their stock prices shot too high in the mania around AI. That’s taken a toll because chip companies, makers of computer memory and other AI winners have grown so massive that they’ve become some of Wall Street’s most influential stocks.

Drops of 2.4% for Nvidia, 4.4% for Broadcom and 6.2% for Micron Technology were the heaviest weights pulling the S&P 500 lower.

Dave & Buster’s Entertainment sank 6.2% after reporting a weaker profit for the latest quarter than analysts expected, while Robinhood Markets fell 1.4% after the investing platform said that it’s laying off about 10% of its full-time employees.

On the winning side of Wall Street was SpaceX, which rose 4.8% for its third straight gain since its debut on the U.S. stock market. It said it’s moving forward with a purchase of Cursor, a popular AI coding assistant, valuing it at $60 billion.

Yum Brands climbed 1.9% after it said it’s selling the Pizza Hut chain for $2.7 billion. Most of the restaurants will go to LongRange Capital, a private equity firm. Those in mainland China will go to Yum China Holdings.

All told, the S&P 500 slipped 42.94 points to 7,511.35. The Dow Jones Industrial Average rose 328.64 to 51,999.67, and the Nasdaq composite fell 307.60 to 26,376.34.

The strongest action was in the oil market, where optimism continued that a tentative U.S.-Iran deal on their war will reopen the Strait of Hormuz at the end of the week and get the global flow of oil going again. The price for a barrel of Brent crude fell 5.1% to settle at $78.96.

Significant hurdles remain in the negotiations, including what to do with Iran’s nuclear program. But the hope on Wall Street is that this agreement will mean a long-term fix to a conflict that has worsened inflation around the world. The price of Brent has come down sharply from its $100-plus level of a few weeks ago, though it could still take months for the energy industry to get back to full speed.

In stock markets abroad, indexes rose in Europe following a mixed performance in Asia.

Tokyo’s Nikkei 225 briefly topped 70,000 for the first time before ending with a modest gain of 0.1% after the Bank of Japan raised its benchmark interest rate to 1%. That’s its highest level in three decades, and it followed a similar move by the European Central Bank last week.

The Federal Reserve began its own meeting on what to do with interest rates Tuesday, with an announcement on the decision scheduled for Wednesday.

It’s the first meeting under the Fed’s new chair, Kevin Warsh, who was nominated by President Donald Trump. Trump has been pushing for lower interest rates, which would give the economy a boost but also threaten to worsen inflation. The widespread expectation, though, is that the Fed will leave its main interest rate alone again.

In the bond market, the yield on the 10-year Treasury fell to 4.43% from 4.47% late Monday and from 4.56% earlier this month.

High yields in bond markets worldwide caused by expensive oil prices have threatened to slow economies and undercut prices for all kinds of investments, including stocks and cryptocurrencies.

High yields have already sent mortgage rates higher, and a report on Tuesday said construction crews broke ground on far fewer new U.S. homes in May than economists expected.

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AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.

NEW YORK (AP) — A hearing in Luigi Mangione ’s state murder case in the killing UnitedHealthcare CEO Brian Thompson was postponed until Wednesday after prosecutors failed to inform his jailors that he was needed in court.

Judge Gregory Carro had scheduled the hearing for Tuesday but adjourned it about a half-hour after it was supposed to start when Assistant District Attorney Joel Seidemann told him that prosecutors had failed to send required paperwork to the jail.

“It’s on us,” Seidemann said. “We got the writ signed but we failed to serve it.”

“That’s unfortunate,” Carro replied.

Seidemann noted that the judge in Mangione’s federal case, Margaret Garnett, had sent an order to the jail authorizing him to wear a suit to court, but the prosecutor acknowledged that alone wasn’t enough to get him brought to court.

Mangione, 28, is being held at a federal jail in Brooklyn while awaiting trial in state and federal trials in the Dec. 4, 2024, killing. He has pleaded not guilty in both cases and could spend his life in prison if convicted in either case.

Carro had been expected to rule Tuesday on an unspecified matter after holding a secret hearing two weeks ago. Carro said he sealed the virtual proceeding at the request of the defense but provided no other details at the time.

Any ruling from Carro would now come on Wednesday.

Mangione is set to go to trial in the state case on Sept. 8. His federal trial, which involves stalking charges, is set to begin on Oct. 13.

Thompson, 50, was killed as he walked to a Manhattan hotel for UnitedHealth Group’s annual investor conference. Surveillance video showed a masked gunman shooting him from behind. Police say “delay,” “deny” and “depose” were written on the ammunition, mimicking a phrase used to describe how insurers avoid paying claims.

Mangione, an Ivy League graduate from a wealthy Maryland family, was arrested five days later at a McDonald’s in Altoona, Pennsylvania, about 230 miles (about 370 kilometers) west of Manhattan.

At a hearing last month, Carro ruled that a gun and notebook that prosecutors say link Mangione to the killing can be used as evidence against him.

The gun, a 3D-printed pistol, matches the one used to kill Thompson, prosecutors said. The notebook describes wanting to “wack” a health insurance executive and rebelling against “the deadly, greed fueled health insurance cartel.”