Pizza Hut is set to shut down 250 restaurants across the United States as part of a strategic turnaround plan, Yum! Brands announced Wednesday.
The closures, representing about 3% of Pizza Hut's US footprint, are scheduled to take place in the first half of 2026.
Yum! Brands, which also owns Taco Bell and KFC, said the closures will target "underperforming" locations, though the company has not specified which restaurants will be affected.
CFO Ranjith Roy described the move as part of the company's broader "Hut Forward" strategy, which includes marketing investments and technology upgrades aimed at improving the brand's performance.
"Looking back at 2025, Pizza Hut saw a 1% same-store sales decline globally for the quarter of the year," Roy said.
He added that while sales are growing in regions like the Middle East, Latin America, and Asia, US operations have struggled.
Pizza Hut's difficulties have been compounded by competition from rivals like Domino's, which focuses heavily on delivery and carryout.
In 2025, Pizza Hut US same-store sales dropped 5%, and new value menu items, such as a $5 pizza, failed to draw cash-conscious customers.
According to TheHills, Domino's now has 21,750 stores worldwide, while Pizza Hut operates 19,974 locations.
Pizza Hut expected to close 250 locations during the first half of 2026 pic.twitter.com/br3hisTnUE
— Dallas Texas TV (@DallasTexasTV) February 5, 2026
Pizza Hut Faces Another Round of US Closures
The closures also follow previous challenges for the chain. In 2020, one of Pizza Hut's largest franchisees filed for bankruptcy, shuttering 300 locations.
Yum! Brands has warned that a sale of Pizza Hut could be a possibility after conducting a strategic review in late 2025.
Despite the challenges, Yum! Brands has seen success with its other properties.
Taco Bell posted a 7% increase in US same-store sales in the fourth quarter of 2025, thanks to popular new menu items and a broad customer base, NY Post reported.
KFC also showed modest growth, with US same-store sales rising 1% during the same period.
Founded in 1958 in Wichita, Kansas, by brothers Dan and Frank Carney, Pizza Hut became a cultural icon with its red roof design, introduced in 1969.
PepsiCo acquired the chain in 1977, and it later became part of Yum! Brands when the restaurant division was spun off in 1997.
Originally published on vcpost.com
