LOUISVILLE, Ky., Feb 4, 2026, 14:57 EST
- Yum Brands will shut roughly 250 underperforming Pizza Hut locations across the U.S. by mid-2026
- These shutdowns are part of a turnaround effort dubbed “Hut Forward” as Yum presses ahead with a strategic review of Pizza Hut
- Pizza Hut’s U.S. same-store sales dropped 3% in the fourth quarter and slid 5% for 2025
Yum Brands plans to shutter roughly 250 underperforming Pizza Hut locations in the U.S. by mid-2026, executives disclosed to analysts Wednesday. The move is part of an ongoing strategic review that might lead to selling the chain. The announcement came alongside quarterly results where Yum exceeded sales forecasts but fell short on profit. Reuters
Pizza Hut’s closures are hitting at a tough time as the brand continues to struggle in its core U.S. market. Same-store sales — measuring outlets open at least a year — dropped 3% in Q4 and slid 5% for all of 2025, highlighting a sluggish turnaround. Restaurantdive
Chief Financial Officer Ranjith Roy described the closures as part of “Hut Forward,” a U.S. initiative combining targeted shutdowns with marketing support, technology upgrades, and changes to franchise agreements. He called it a “bridge to a longer-term acceleration of the brand.” Fool
Chief Executive Chris Turner confirmed the review of options is “proceeding as planned” and said management still aims to wrap it up by year-end. He declined to share specifics while the process is ongoing. “As of now, we intend to complete the review of options this year,” Turner noted. Nrn
Yum reported that Pizza Hut finished 2025 with 19,974 restaurants globally, down from 20,225 the previous year. This came despite opening 1,184 new locations across 65 countries. The company also revealed it spent around $36 million on adviser fees related to its strategic review and took a $5 million write-off on franchise incentive assets in preparation for a possible deal. Q4Cdn
Pizza Hut reported 19,872 locations worldwide as of Sept. 30, 2025, with 68% situated outside the U.S. Over 99% of these restaurants are franchised. This suggests around 6,360 outlets in the U.S.; shutting down 250 would cut about 4% of that count. Cloudfront
Back in November, Yum announced it was kicking off a strategic review, saying it would weigh multiple options but made clear there was no certainty it would lead to a deal. The company confirmed it kept Goldman Sachs and Barclays on board as financial advisers. Yum
Pizza Hut has been falling behind Domino’s and other major pizza chains, with Yum relying on discount promotions — including $5 deals — to try to boost traffic, according to media reports. Yum hasn’t announced which locations will shut down. Local12
But the cleanup will take a short-term toll. Roy said Yum anticipates Pizza Hut’s core operating profit — the company’s own metric — to drop roughly 15% in Q1. The decline stems from one-off “Hut Forward” marketing expenses and costs related to integrating the newly acquired U.K. outlets.
The rest of Yum is picking up speed. Taco Bell saw U.S. same-store sales jump 7% this quarter. KFC’s global same-store sales climbed 3%, fueled in part by new store openings, the company reported.
Investors are eyeing the initial round of closures and looking for clues on whether Yum will hold onto Pizza Hut or overhaul the chain after its review. The planned shutdowns were also covered Wednesday by CNN, The Hill, and Restaurant Business. Cnn Thehill Restaurantbusinessonline
