Pizza Hut’s Parent Company Explores Potential Sale of Chain
Yum Brands, the parent company of Pizza Hut, has announced a formal review of potential options for the pizza chain. This decision comes as Pizza Hut faces challenges in the competitive pizza market.
Overview of Pizza Hut’s Market Position
Pizza Hut operates nearly 20,000 locations across more than 100 countries. Recently, its international sales increased by 2% in the first nine months of this year. Notably, China serves as its second-largest market after the United States.
U.S. Market Challenges
Despite its global presence, Pizza Hut generates nearly half of its revenue from the U.S., where it has approximately 6,500 stores. However, U.S. sales have dropped by 7% during the same reporting period.
Issues and Strategic Review
Historically, Pizza Hut has struggled with large dine-in restaurants, which consumers are increasingly moving away from in favor of quick pickup and delivery options. In 2020, a major franchisee filed for bankruptcy, resulting in the closure of 300 stores.
Chris Turner, CEO of Yum Brands, emphasized the importance of reassessing strategies. He stated that the current performance of Pizza Hut indicates a need for decisive action to unlock its full potential. He indicated that this might be better achieved outside of Yum Brands.
- Yum Brands is conducting a review of Pizza Hut.
- Pizza Hut has 20,000 stores in over 100 countries.
- International sales rose by 2% in the first nine months of the year.
- Pizza Hut’s U.S. sales declined by 7% during the same period.
Future Direction
The exact timeline for this review has not been established, and Yum Brands has indicated that it will refrain from further comments regarding the process. Following the announcement, shares of Yum Brands rose nearly 7% in morning trading.
