Pizza Hut, the 68-year-old chain that has long struggled with growing competition and outdated restaurants, will be sold for US$2.7 billion by parent company Yum Brands.

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

The mainland China Pizza Hut will be purchased by Yum China Holdings Inc for approximately US$1.2 billion, the company said. China is Pizza Hut's second-largest market outside the US, accounting for 19 per cent of sales.