LOUISVILLE, Ky., Feb 4, 2026, 14:57 EST
- Yum Brands plans to close about 250 underperforming Pizza Hut outlets in the U.S. by mid-2026
- Yum has launched a strategic review of Pizza Hut, with these shutdowns forming a key part of the turnaround plan called “Hut Forward.”
- Pizza Hut’s U.S. same-store sales fell 3% in the fourth quarter and declined 5% for 2025
Yum Brands revealed plans to close about 250 underperforming Pizza Hut outlets in the U.S. by mid-2026, executives told analysts Wednesday. This is part of a strategic review that could eventually lead to selling the Pizza Hut chain. The news came alongside quarterly results where Yum beat sales expectations but missed profit targets. https://www.reuters.com/business/kfc-parent-yum-brands-tops-same-store-sales-estimates-diners-seek-value-meals-2026-02-04/
Pizza Hut’s recent closures come amid ongoing struggles in its key U.S. market. Same-store sales, tracking locations open at least a year, fell 3% in Q4 and slipped 5% across 2025, underscoring the brand’s slow recovery. https://www.restaurantdive.com/news/pizza-hut-2026-250-closures-yum-strategic-review/811332/
Chief Financial Officer Ranjith Roy called the closures part of “Hut Forward,” a U.S. plan that pairs targeted shutdowns with marketing support, tech upgrades, and tweaks to franchise agreements. He described it as a “bridge to a longer-term acceleration of the brand.” https://www.fool.com/earnings/call-transcripts/2026/02/04/yum-brands-yum-q4-2025-earnings-call-transcript/
Chief Executive Chris Turner said the review of options is “proceeding as planned” and management still aims to finish it by year-end. He wouldn’t provide details while the process is underway. “As of now, we intend to complete the review of options this year,” Turner added. https://www.nrn.com/restaurant-finance/pizza-hut-is-closing-250-u-s-locations-in-the-first-half-of-2026
Yum reported Pizza Hut ended 2025 with 19,974 locations worldwide, down from 20,225 a year earlier. That drop came even though the chain opened 1,184 new restaurants across 65 countries. The company also disclosed spending about $36 million on adviser fees tied to its strategic review and took a $5 million write-off on franchise incentive assets as it gears up for a potential deal. https://s2.q4cdn.com/890585342/files/doc_financials/2025/q4/Yum-4Q25-Earnings-Release.pdf
Pizza Hut had 19,872 locations globally as of Sept. 30, 2025, with 68% outside the U.S. More than 99% are franchised. That puts roughly 6,360 stores in the U.S.; closing 250 would trim about 4% of that number. https://d18rn0p25nwr6d.cloudfront.net/CIK-0001041061/115334ea-0eed-4700-93df-b10df4161e57.html
In November, Yum kicked off a strategic review, saying it was exploring several options but stopped short of committing to a deal. The company confirmed it’s sticking with Goldman Sachs and Barclays as financial advisers. https://investors.yum.com/news-events/financial-releases/news-details/2025/Yum-Brands-Inc–Initiates-Review-of-Strategic-Options-for-Pizza-Hut-to-Maximize-Shareholder-Value-and-Help-It-Reach-Its-Full-Potential/default.aspx
Pizza Hut is lagging behind Domino’s and other top pizza chains, with Yum Brands pushing $5 discount deals to try and drive more customers, according to media sources. Yum has yet to reveal which outlets will be closing. https://local12.com/news/nation-world/pizza-hut-faces-nationwide-closures-as-parent-company-reviews-sales-options-taco-bell-kfc-yum-brand-dominos-raising-canes-chick-fil-a-fast-food-restaurants-earnings-call
But the cleanup will hit earnings in the short term. Roy said Yum expects Pizza Hut’s core operating profit — its internal metric — to fall about 15% in Q1. This drop reflects one-time “Hut Forward” marketing costs and expenses tied to bringing the new U.K. locations on board.
The rest of Yum is gaining momentum. Taco Bell’s U.S. same-store sales surged 7% this quarter. KFC’s global same-store sales rose 3%, helped by new store openings, according to the company.
Investors are zeroing in on the initial closures, searching for signs of whether Yum will keep Pizza Hut intact or shake up the brand after its review. Wednesday’s planned shutdowns also caught coverage from CNN, The Hill, and Restaurant Business. https://www.cnn.com/2026/02/04/food/pizza-hut-closures https://thehill.com/homenews/nexstar_media_wire/5722754-pizza-hut-closing-250-underperforming-locations/ https://www.restaurantbusinessonline.com/financing/pizza-hut-closing-250-us-restaurants
