Pizza Hut Announces Major US Store Closures Amid Strategic Review
Pizza Hut is preparing to close 250 restaurant locations across the United States during the first half of 2026. The decision comes as parent company Yum! Brands conducts a comprehensive strategic review of the struggling pizza chain. During Wednesday's fourth quarter 2025 earnings call, Yum! Brands revealed plans to shutter approximately 250 underperforming Pizza Hut locations nationwide.
Strategic Review and Performance Challenges
The closures represent about 3 percent of Pizza Hut's total US footprint, which currently stands at approximately 6,500 locations. Yum! Brands, which also operates Taco Bell and KFC, did not specify which particular restaurants would be affected by the closures. This announcement follows CEO Chris Turner's November statement that the company had launched a "formal review of strategic options" for Pizza Hut, including the potential sale of the chain.
During the earnings call, company executives declined to discuss details of the ongoing review but confirmed they expect it to be completed later this year. Yum! CFO Ranjith Roy emphasized that the closures would specifically target underperforming locations as part of efforts to revive the struggling brand.
Competitive Pressures and Sales Decline
The closures come as Pizza Hut continues to face significant competitive challenges from rival chains like Domino's Pizza. Unlike other Yum! brands such as Taco Bell, which has successfully attracted new customers through innovative menu offerings, Pizza Hut has struggled to maintain market position.
According to the company's earnings release, Pizza Hut experienced a 3 percent decline in same-store sales for US locations during the fourth quarter of 2025, with a 5 percent decline for the entire year. This performance stands in stark contrast to the chain's historical success as the world's top pizza chain by sales in 1971, just two years after its 1969 launch.
Historical Context and Global Presence
Pizza Hut operates nearly 20,000 stores across more than 100 countries worldwide, but generates nearly half of its total sales from the United States market. The chain has faced previous challenges, including in 2020 when one of its largest franchisees filed for bankruptcy protection and closed 300 locations.
The company's ownership history includes acquisition by PepsiCo in 1977, followed by the spinoff of PepsiCo's restaurant division in 1997 that created Yum! Brands. The current strategic review and store closures represent the latest chapter in the chain's efforts to adapt to changing market conditions and consumer preferences in the competitive fast food industry.
