Pizza Hut is preparing to close 250 of its restaurant locations across the United States, as its parent company conducts a comprehensive strategic review of the struggling pizza chain. The announcement came during Yum! Brands' fourth quarter 2025 earnings call, revealing significant challenges facing the once-dominant pizza brand.
Strategic Review Leads to Major Restructuring
Yum! Brands, which also operates Taco Bell and KFC, confirmed that 250 underperforming Pizza Hut locations will cease operations during the first half of 2026. The company declined to specify which particular restaurants would be affected, but indicated these closures represent approximately 3 percent of Pizza Hut's total US footprint.
Financial Performance Declines
The decision follows concerning financial results for the pizza chain. According to the company's earnings release, Pizza Hut experienced a 3 percent decline in same-store sales during the fourth quarter of 2025, with a more substantial 5 percent drop recorded for the full year. This performance stands in stark contrast to other Yum! brands, particularly Taco Bell, which has successfully attracted new customers through innovative menu introductions.
During the earnings call, Yum! Chief Financial Officer Ranjith Roy emphasised that the closures would specifically target underperforming locations as part of broader efforts to revitalise the struggling chain. The company has been conducting what it terms a "formal review of strategic options" for Pizza Hut since November 2025, with CEO Chris Turner previously indicating that selling the chain remained a possibility under consideration.
Historical Context and Market Position
Pizza Hut, which first launched in 1969, grew rapidly to become the world's top pizza chain by sales within just two years. The brand was acquired by PepsiCo in 1977 before becoming part of Yum! Brands when the restaurant division was spun off in 1997. Today, Pizza Hut operates nearly 20,000 stores across more than 100 countries worldwide.
Despite this global presence, the United States market remains critically important, generating nearly half of the company's total sales from approximately 6,500 domestic locations. The current challenges are not entirely unprecedented for the chain; in 2020, one of Pizza Hut's largest franchisees filed for bankruptcy protection and closed 300 stores, signalling earlier difficulties in the competitive pizza market.
Competitive Pressures Mount
The restaurant closures come as Pizza Hut faces increasing competition from rival chains like Domino's Pizza, which has implemented aggressive expansion and digital ordering strategies. Unlike its more successful sibling brands within the Yum! portfolio, Pizza Hut has struggled to maintain customer interest and market share in recent years.
During Wednesday's earnings call, company executives declined to discuss details of the ongoing strategic review, noting only that they expect the process to be completed sometime this year. The Independent has reached out to Yum! Brands for additional comment regarding the planned closures and their potential impact on employees and local communities.
This significant restructuring represents the latest chapter in Pizza Hut's efforts to adapt to changing consumer preferences and intense competition within the quick-service restaurant industry. As the strategic review continues, industry observers will be watching closely to see whether further closures, sales, or operational changes might follow these initial 250 restaurant shutdowns.
