Pizza Hut — owned by Yum! Brands, Inc. (NYSE:YUM) — announced that the company has inked a deal with Telepizza to expand the company’s global reach.
The deal was completed on Wednesday when Pizza Hut signed a franchise agreement with the Madrid-based pizza company. The move will make the former the largest pizza chain in Latin America and the Caribbean.
The move will give Telepizza the responsibility of overseeing close to 1,000 Pizza Huts and contribute to nearly 1,500 of its stores from the company’s global units across all markets, including the likes of Spain, Portugal and Switzerland.
Over a certain period of time, Telepizza will convert all of its stores in Latin America (with the exception of Brazil) and the Caribbean into Pizza Hut stores, according to Milind Pant, the Pizza Hut international president.
Telepizza Group is hoping to open at least 1,300 new stores over the next 10 years, as well as a total of 2,550 new stores over the next 20 years. Most of these store openings will be Pizza Hut locations, including all of its stores in Latin America and the Caribbean.
Latin America amounted to roughly 6% of Pizza Hut’s total sales in 2017, according to Yum Brands in the company’s fiscal first-quarter earnings release. Pizza Hut has been posting weak sales in recent quarters, so the deal will help propel the company forward.
PZZA stock is up 1.4% Wednesday.