Pizza Hut could soon be up for sale as its parent company, Yum Brands, announced a formal review of strategic options for the struggling pizza chain. The move comes as the brand faces intense competition and changing consumer preferences.
Yum CEO Chris Turner acknowledged the challenges, stating that Pizza Hut's performance indicates the need for additional action to realise its full value, which may be better executed outside of Yum Brands. Pizza Hut has nearly 20,000 stores globally, but its US sales—which account for nearly half of its revenue—fell 7% in the first nine months of the year.
The chain has been burdened by large, outdated dine-in restaurants at a time when customers increasingly prefer fast pickup and delivery. In 2020, one of its largest franchisees filed for bankruptcy and closed 300 stores. Meanwhile, rival Domino's has become the world's largest pizza chain with 21,750 stores, focusing on delivery and carryout.
The announcement follows news that Denny's, another 1950s-era dine-in icon, is being sold to an investor group and taken private. Both chains have struggled with the shift to delivery and growing competition in casual dining.
