Pizza Hut to shut down 250 U.S. locations as parent company weighs potential sale of the brand
Pizza Hut has announced plans to shut down around 250 restaurants across the United States in the first half of this year, as its parent company, Yum Brands, continues to evaluate the potential sale of the iconic pizza chain.
Yum Brands said on Wednesday that the closures will focus on underperforming Pizza Hut locations within its U.S. system. The brand currently operates more than 6,000 restaurants nationwide, but many outlets have struggled amid changing consumer preferences, aging store formats, and intensifying competition in the pizza delivery market.
Based in Louisville, Kentucky, Yum Brands revealed in November that it had launched a formal review of strategic options for Pizza Hut. The move comes after a challenging year for the chain in its home market. According to Yum, Pizza Hut’s U.S. same-store sales—sales at locations open for at least one year—declined by 5% last year, highlighting ongoing pressure on the brand.
In contrast, rival Domino’s Pizza, the world’s largest pizza company, has continued to gain momentum in the U.S. While Domino’s has not yet released its full-year earnings, its U.S. same-store sales rose 2.7% during the first nine months of last year, underscoring the competitive gap Pizza Hut is facing domestically.
Outside the United States, however, Pizza Hut’s performance has been more resilient. Yum Brands reported that international same-store sales increased by 1% last year, driven by growth in Asia, the Middle East, and Latin America. China remains Pizza Hut’s second-largest market after the U.S., accounting for approximately 19% of the brand’s total sales.
Yum Brands CEO Chris Turner said the company expects to complete its strategic review of Pizza Hut sometime this year, though he declined to provide additional details about the process or a potential sale.
Globally, Pizza Hut ended 2025 with 19,974 restaurants, representing a net decline of 251 locations compared with the previous year. While the chain opened nearly 1,200 new stores across 65 countries last year, closures ultimately outpaced new openings. Yum Brands noted that Pizza Hut plans additional international expansions in 2026, though specific markets and numbers were not disclosed.
Founded in 1958 in Wichita, Kansas, Pizza Hut has a long history in the global fast-food industry. The chain was acquired by PepsiCo in 1977 before being spun off as part of Yum Brands in 1997. Today, Yum Brands also owns and operates KFC, Taco Bell, and Habit Burger & Grill.
As Yum Brands weighs the future of Pizza Hut, the planned U.S. closures signal a major restructuring effort that could reshape one of America’s most well-known restaurant brands.
