Pizza Hut to Close 250 U.S. Outlets Amid Parent Company’s Strategic Review
February 5, 2026
News & Politics

Pizza Hut to Close 250 U.S. Outlets Amid Parent Company’s Strategic Review

Yum Brands evaluates future of Pizza Hut as U.S. same-store sales decline and international markets show modest growth

Summary

Pizza Hut is set to shut down 250 locations across the United States in the first half of this year as its owner, Yum Brands, assesses options including a potential sale of the chain. The closures come amid a 5% drop in U.S. same-store sales last year, reflecting challenges from aging outlets and intensifying competition. While domestic performance has faltered, Pizza Hut's international markets, especially in Asia, the Middle East, and Latin America, registered slight gains in same-store sales.

Key Points

Pizza Hut will close 250 U.S. restaurants in the first half of 2026 targeting underperforming locations within its network of over 6,000 domestic outlets.
The chain experienced a 5% decrease in U.S. same-store sales last year, contrasting with competitor Domino's 2.7% increase over the first three quarters.
Internationally, Pizza Hut saw a 1% rise in same-store sales driven by markets in Asia, the Middle East, and Latin America, with China accounting for a significant 19% of total sales.

In a notable move attributed to operational challenges and changing market dynamics, Pizza Hut has announced plans to close approximately 250 of its U.S. restaurants by mid-2026. This decision comes at a critical juncture as Yum Brands, the Louisville-headquartered parent company, is engaged in a comprehensive review of strategic options for the pizza chain, including the possibility of divestiture.

Currently operating more than 6,000 U.S. locations, Pizza Hut has encountered headwinds domestically, with its same-store sales falling by 5% during the previous year. This comparative decline reflects sustained pressures caused by outdated store environments and intensified rivalry within the pizza sector. By contrast, Domino’s, the leading global pizza chain, experienced a 2.7% rise in same-store sales across its U.S. outlets over the first three quarters of the past year, underscoring the competitive strain facing Pizza Hut.

On the international front, Pizza Hut’s performance demonstrated relative resilience. Yum Brands reported a 1% increase in same-store sales outside the United States, fueled by growth in key regions such as Asia, the Middle East, and Latin America. Notably, China stands as Pizza Hut’s second-most significant market beyond the U.S. borders, representing 19% of the company’s revenue.

Amid these developments, Yum Brands Chief Executive Officer Chris Turner affirmed that the company intends to finalize its strategic review concerning Pizza Hut by the end of this year. Nonetheless, Turner refrained from elaborating on any forthcoming decisions or timelines linked to the review process.

Looking at the global footprint, Pizza Hut’s total worldwide store count stood at 19,974 at the conclusion of 2025, marking a decrease of 251 locations compared to the year prior. Despite openings of nearly 1,200 new stores spanning 65 countries within the previous year, the number of closures exceeded those additions, resulting in an overall net decrease. Yum Brands has conveyed intentions to continue expanding Pizza Hut’s global presence during 2026, though specific plans or markets were not detailed.

Tracing its origins back to 1958 in Wichita, Kansas, Pizza Hut has traversed significant corporate transformations. After being acquired by PepsiCo in 1977, the restaurant business was spun off in 1997 to form what is today Yum Brands. This conglomerate owns a portfolio of restaurant brands including KFC, Taco Bell, and Habit Burger & Grill, alongside Pizza Hut.

Risks
  • Continued decline in U.S. sales and closure of restaurants may impact Pizza Hut's overall market presence and profitability, posing risks to Yum Brands’ revenue from this segment.
  • Competition within the U.S. pizza market, particularly from more agile rivals like Domino's, risks further eroding Pizza Hut's domestic sales performance.
  • The outcome of Yum Brands’ ongoing strategic review holds uncertainty regarding the future ownership or structural changes for Pizza Hut, which may affect investor and market confidence.
Disclosure
This analysis is based solely on information provided by Yum Brands and public sales data. No speculative insights or external data have been incorporated.
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