Pizza Hut Shuts Down 250 Locations Nationwide
Pizza Hut is set to close approximately 250 locations across the United States during the first half of 2026. This decision is part of a strategic review aimed at repositioning the brand, according to Yum Brands CFO Ranjith Roy. The evaluation was initiated last year, reflecting ongoing concerns about the chain’s performance compared to its competitors.
Current Performance and Strategic Review
In the fourth quarter of 2025, Pizza Hut reported a decline in same-store sales, dropping by 3% for the quarter and 5% for the entire year. This continued downturn indicates persistent challenges for the brand.
“Hut Forward” Initiative
The impending closures are part of a plan called “Hut Forward.” This initiative aims to revitalize the brand through improved marketing, updated technology, and better franchise agreements. Yum Brands will also contribute to marketing support as part of this program.
- 250 U.S. stores to be closed, representing about 4% of the brand’s U.S. locations.
- Approximately 32% of the total Pizza Hut stores (around 6,360) are based in the U.S.
- The brand’s total worldwide store count decreased from 20,225 in 2024 to 19,974 in 2025.
Financial Implications
Yum Brands has invested significant resource in the review process, totaling $36 million in 2025, including $32 million in the last quarter alone. The company also incurred a loss of $5 million related to franchise incentive assets in preparation for potential restructuring.
Potential Sale of Pizza Hut
Yum’s leadership, including CEO Chris Turner, has indicated that the strategic review may result in a sale of Pizza Hut. The company has not provided additional details but aims to conclude the review within the current year.
This thorough assessment and subsequent closures reflect a critical juncture for Pizza Hut as it strives to regain its competitive edge within the fast-food industry. The response to these changes will be closely monitored by industry analysts and stakeholders alike.
