Pizza Hut Shutters 250 Locations Nationwide
Pizza Hut, a prominent name in the fast food industry, plans to close 250 underperforming locations in the U.S. This decision comes as part of a broader strategic review by its parent company, Yum! Brands.
Overview of Pizza Hut Closures
The closures are scheduled for the first half of 2026. Yum! Brands has not yet disclosed the specific locations targeted for closure. This move follows significant declines in domestic sales.
Financial Context
- 3% drop in U.S. same-store sales in the fourth quarter of 2025
- 7% decline in sales reported in November 2025
Chris Turner, CEO of Yum! Brands, emphasized the importance of taking strategic actions to better value the Pizza Hut brand. He stated that the company is exploring various options to enhance performance.
Market Performance
Internationally, Pizza Hut has experienced better results, with same-store sales outside the U.S. increasing by 1% last year. Growth has been particularly strong in regions such as Asia, Latin America, and the Middle East.
Global Structure
- Pizza Hut operates approximately 20,000 locations worldwide.
- End of 2025 showed a net decline of 251 stores despite nearly 1,200 new openings.
- China accounts for about 20% of Pizza Hut’s global sales.
In contrast with Pizza Hut’s struggles, rival chains such as Taco Bell and Domino’s reported positive outcomes. Taco Bell saw a 7% increase in same-store sales, while Domino’s experienced a 2.7% growth in sales through the first nine months of the previous year.
Industry Trends
The recent closure trends are not unique to Pizza Hut. Other chains like Noodles & Co., Red Robin, and Wendy’s are also evaluating their underperforming locations. The focus in the restaurant industry has shifted towards maintaining higher-performing stores to boost overall profitability.
As Pizza Hut navigates through these changes, the company remains committed to its long-term vision. The strategic review may lead to further initiatives aimed at revitalizing the brand and enhancing customer engagement.
