Pizza Hut is shutting down 250 locations as its parent company completes a strategic review of the business, warning it could potentially sell off the chain.
The “underperforming” storefronts – which amount to about 3% of Pizza Hut’s US footprint – will be shuttered in the first half of this year, Yum! Brands execs said during a Wednesday earnings call.
Yum! Brands, which also owns Taco Bell and KFC, did not specify which Pizza Hut locations would be impacted.
The closures are part of a turnaround strategy called “Hut Forward,” which includes marketing investments and technology upgrades, Yum! CFO Ranjith Roy said during the call.
In November, Yum! announced a strategic review into Pizza Hut, warning it could lead to a possible sale of the brand down the line.
The company said Wednesday that it expects the review to be completed this year.
Pizza Hut has struggled to keep up with competitors, especially top rival Domino’s, and its new value options like a $5 pie have failed to appeal to cash-strapped customers.
In 2025, US same-store sales dropped 5%.
The brand marked a 3% decline in the fourth quarter, signaling its turnaround efforts have not yet taken hold.
Meanwhile, Taco Bell has been a standout for Yum! Brands.
US same-store sales jumped 7% in the fourth quarter as the fast-food chain launched popular new menu items and appealed to a wide range of customers from high-income consumers to families and younger people.
KFC’s own turnaround process showed some signs of promise in the fourth quarter as US same-store sales ticked up 1%.
The fried chicken chain’s executives have been trying to catch up to rivals like Raising Cane’s and Chick-fil-A.
