Pizza Hut plans to close its hundreds of locations across the United States during the first half of 2026 as parent company Yum! Brands is moving forward with a strategic review aimed at addressing ongoing brand challenges.
Yum! Brands, the parent company of Taco Bell and KFC, announced during Wednesday’s earnings call that it will close 250 “underperforming” Pizza Hut locations in the first half of the year, or about 3% of the chain’s total U.S. presence, according to CNN.
The company said in November that it had begun a “formal review of strategic options” for Pizza Hut, including the possibility of a sale. On Wednesday, Yum! provided no new details, only noting that the review is expected to be completed later this year, the report said.
Pizza Hut continues to face challenges in an increasingly competitive pizza market, especially as it falls behind arch-rival Domino’s. The chain reportedly had another disappointing quarter, with same-store sales in the U.S. down 3%. Efforts to woo customers with value offers, including a new $5 pizza, have so far failed to catch on.
The CFO reacts
According to a USA Today report, CFO Ranjith Roy, during the Yum! Brands’ earnings call on Feb. 4 said the decision was part of the company’s “Hut Forward” strategy, which focuses on “vibrant marketing, technology upgrades and franchise agreements.”
In the earnings call, Roy stressed that the 250 locations represent only a small fraction of Pizza Hut’s roughly 20,000 restaurants worldwide, adding that the closures are in line with what the company believes is the best way forward as it continues its strategic review.
Yum! The brands told Restaurant Business Online in an emailed statement, saying, “While we are not sharing specific details of franchise agreements, we are pleased to be working with our franchisees on increased efforts to deliver short-term sales and advance long-term strategy.”
Meanwhile, Taco Bell remained a bright spot for Yum! Brands that experienced a 7% increase in same-store sales for the quarter. A steady stream of new menu items has reportedly helped attract a wide range of customers, from high-income diners to younger consumers and families. KFC also showed signs of progress in the US, where same-store sales rose 1% as the brand continues its gradual turnaround. The chain has tapped executives from Taco Bell to help guide menu innovation as it works to compete more effectively with competitors like Raising Cane’s and Chick-fil-A.
Stock Yum! Brands are up 6% so far this year.
