Pizza Hut to Close 250 U.S. Restaurants Amid Parent Company's Review

Pizza Hut to Close 250 U.S. Restaurants Amid Parent Company's Review

Pizza Hut is set to close 250 U.S. restaurants in the first half of this year as its parent company, Yum Brands, considers selling the chain. The closures will target underperforming Pizza Hut locations out of the more than 6,000 in the U.S. Yum Brands announced a formal review of options for Pizza Hut in November due to challenges such as outdated stores and increased competition, leading to a 5% decline in U.S. same-store sales last year.

In contrast, Domino's, the world's largest pizza company, reported a 2.7% increase in U.S. same-store sales in the first nine months of last year. While Pizza Hut faced struggles domestically, its international performance was more positive, with a 1% increase in same-store sales last year, driven by growth in Asia, the Middle East, and Latin America. China, the second-largest market for Pizza Hut outside the U.S., accounted for 19% of sales.

Yum Brands CEO Chris Turner stated that the company aims to finalize its review of options for Pizza Hut this year. Despite opening nearly 1,200 stores across 65 countries in 2025, Pizza Hut ended the year with 251 fewer stores globally than the previous year. Yum Brands plans for more global store openings in 2026, although specific details were not provided.

Founded in 1958 in Wichita, Kansas, Pizza Hut was acquired by PepsiCo in 1977 and later spun off into Yum Brands in 1997. Yum Brands, which also owns KFC, Taco Bell, and Habit Burger & Grill, is evaluating the future of Pizza Hut amid changing market dynamics and performance challenges.