Yum! Brands announced Wednesday that it will close approximately 250 underperforming Pizza Hut locations across the United States during the first half of 2026.
The move comes as the parent company, which also oversees KFC and Taco Bell, continues a formal strategic review of the struggling pizza chain that could potentially lead to a sale of the brand.
Strategic downsizing under the Hut Forward initiative
The planned closures represent roughly 3% of Pizza Hut’s domestic footprint.
During an earnings call on Feb. 4, Yum! Brands Chief Financial Officer Ranjith Roy characterized the decision as a necessary step within the “Hut Forward” strategy, which focuses on technology modernization and vibrant marketing.
“The 250 stores that we mentioned is a very small portion of the 20,000-unit estate that Pizza Hut has globally,” Roy said during the earnings call.
“And it is the right answer for the brand as we move through the strategic review.”
Pizza Hut reports ninth consecutive quarter of declining sales
The brand continues to face significant headwinds in the American market, reporting a 3% drop in US same-store sales for the fourth quarter.
This marks the ninth consecutive quarter of declining sales for the chain. Internationally, the same store sales grew by 1% during the quarter.
Despite attempts to capture budget-conscious consumers with a new $5 value menu, the efforts have failed to gain meaningful traction against aggressive competitors like Domino’s Pizza.
Yum! Brands CEO Chris Turner suggested the brand may need a fresh start under different ownership to find its footing.
“The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” Turner said in a news release.
Divergent performance across the yum portfolio
The struggles at Pizza Hut stand in stark contrast to the robust performance of its sister brands.
Taco Bell remains a top performer, with same-store sales surging 7% last quarter.
The Mexican-inspired chain has successfully attracted a broad demographic, including high-income households and younger diners, through consistent menu innovation.
KFC also reported a modest recovery with a 1% increase in same-store sales.
The chicken giant has recently integrated executives from Taco Bell to spearhead menu updates as it attempts to reclaim market share from competitors like Chick-fil-A and Raising Cane’s.
Broader industry contraction in the new year
Pizza Hut is not alone in its retreat.
Only a month into 2026, several major fast-food and fast-casual players have announced downsizing measures to prioritize high-performing locations.
Noodles & Company recently confirmed plans to shutter up to 35 restaurants this year, while both Red Robin and Wendy’s are currently evaluating underperforming sites for potential closure.
The post Yum! to close 250 Pizza Hut stores as sales slump amid strategic review appeared first on Invezz
