Whitbread Could Make £100m Pizza Hut Dough

Guardian:

Whitbread, the leisure conglomerate, is understood to be close to leaving the high street restaurant market, selling its interests in Pizza Hut and TGI Friday’s back to their respective brand owners in the US.

Whitbread’s talks to sell its 50% stake in Pizza Hut to joint venture partner Yum Brands, the American fast food group which also controls the KFC brand, are the more advanced. Whitbread entered into the joint venture 24 years ago and there are now 600 Pizza Hut restaurant and delivery outlets in the UK.It is understood to have been performing poorly in recent times, and in April Whitbread reclassified Pizza Hut in its accounts – excluding the business from sales or operating profit figures in its restaurant division.

Reports have estimated Whitbread could receive £100m from the sale, which is likely to be followed by a similar disposal of TGI Friday’s, the chain Whitbread developed in the UK under a franchise agreement with brand owner Carlson.