Pizza Hut, the globally recognised pizza chain, has announced plans to close 250 of its restaurants across the United States during the first half of 2026. This significant reduction comes as its parent corporation, Yum Brands, actively considers a potential sale of the brand following a formal strategic review initiated in November 2025.
Strategic Review and Underperformance Drive Closures
Yum Brands, headquartered in Louisville, Kentucky, confirmed on Wednesday that the targeted closures will focus on underperforming locations within its extensive US network. Pizza Hut currently operates more than 6,000 outlets in the United States, but has faced considerable challenges, including ageing store formats and intensifying market competition.
The chain's financial performance in its domestic market has been notably weak. Yum Brands reported that Pizza Hut's US same-store sales, which measure revenue from locations open for at least one year, declined by 5% throughout the previous year. This downturn starkly contrasts with the performance of its main rival, Domino's Pizza, which saw its US same-store sales increase by 2.7% in the first nine months of 2025, although its full-year earnings are yet to be released.
International Operations Show Resilience
In contrast to its domestic struggles, Pizza Hut's international business has demonstrated greater resilience. The company's international same-store sales grew by 1% last year, with positive performance recorded in key regions such as Asia, the Middle East, and Latin America. Notably, China stands as Pizza Hut's second-largest market outside the United States, contributing a substantial 19% of the brand's total sales.
Global Footprint and Future Plans
Despite the planned US closures, Pizza Hut maintains a vast global presence. The chain concluded 2025 with 19,974 stores worldwide, although this represented a net decrease of 251 locations compared to the previous year. This reduction occurred despite the opening of nearly 1,200 new stores across 65 countries, as closures ultimately exceeded new openings.
Yum Brands has indicated that Pizza Hut intends to pursue further global expansion in 2026, although specific details regarding the scale and locations of these planned openings were not disclosed. Chris Turner, the Chief Executive Officer of Yum Brands, stated that the company aims to finalise its review of strategic options for Pizza Hut within the current year, but declined to provide additional updates on the ongoing process.
Historical Context and Corporate Structure
Pizza Hut was originally founded in Wichita, Kansas, in 1958. The brand was acquired by PepsiCo in 1977, before being spun off as part of the restaurant division that ultimately became Yum Brands in 1997. Today, Yum Brands' portfolio also includes other major fast-food chains such as KFC, Taco Bell, and Habit Burger & Grill, positioning it as a significant player in the global quick-service restaurant industry.
The decision to close hundreds of US stores and explore a sale underscores the shifting dynamics within the competitive fast-food sector, where brands must continually adapt to changing consumer preferences and economic pressures to maintain market relevance and profitability.
