Pizza Hut to shut down 250 stores across US

PIZZA Hut plans to shut down its hundreds of locations across the United States during the first half of 2026 as parent company Yum! Brands moves forward with a strategic assessment aimed at addressing the brand’s ongoing challenges.

Yum! Brands, the parent company of Taco Bell and KFC, announced during Wednesday’s earnings call that it will close 250 ‘underperforming’ Pizza Hut locations in the first half of the year, about 3% of the chain’s total US presence, according to CNN.

The company said in November that it had begun a “formal review of strategic options” for Pizza Hut, including the possibility of a sale. On Wednesday, Yum! provided no new details, noting only that the review is expected to be completed later this year, the report noted.

Pizza Hut has continued to face challenges in an increasingly competitive pizza market, particularly as it trails behind major rival Domino’s. The chain reportedly posted another disappointing quarter, with US same-store sales falling 3%. Efforts to win over customers through value offerings, including a new $5 pizza, have so far failed to gain traction.

As per a report by USA Today, Chief Financial Officer Ranjith Roy, during Yum! Brands’ February 4 earnings call stated the decision was part of the company’s “Hut Forward” strategy, which focuses on “vibrant marketing, modernisation of technology, and franchise agreements".

Roy emphasised on the earnings call that the 250 locations represent only a small fraction of Pizza Hut’s roughly 20,000 restaurants worldwide, adding that the closures align with what the company believes is the best path forward as it continues its strategic review.

Yum! Brands informed Restaurant Business Online in an emailed statement, saying, “While we don’t share specific details of franchise agreements, we are pleased to be working in partnership with our franchisees on increased efforts to deliver near-term sales while advancing long-term strategy."
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Meanwhile, Taco Bell remained a bright spot for Yum! Brands posting a 7% jump in same-store sales for the quarter.

A steady stream of new menu items has reportedly helped attract a broad mix of customers, from high-income diners to younger consumers and families. KFC also showed signs of progress in the US, with same-store sales edging up 1% as the brand continues its gradual turnaround.

The chain has tapped executives from Taco Bell to help drive menu innovation as it works to compete more effectively with rivals like Raising Cane’s and Chick-fil-A.

Shares of Yum! Brands are up 6% so far this year.