Another major restaurant chain is downsizing in some parts of the US.
Pizza Hut's parent company, Yum Brands, plans to close 250 U.S. locations, or about 3% of its national retail footprint, in the first half of 2026.
Yum CFO Ranjith Roy said on Wednesday earnings call that “selective closures of underperforming units” are part of what the company has called its “Hut Forward” strategy, which also calls for more marketing support and an update to the chain's technology and franchise agreements.
There are about 20,000 Pizza Hut locations worldwide, with about 6,400 in the U.S., according to the company's November Securities and Exchange Commission filing. presentation.
Yum did not respond to a request for comment.
The company has not yet said which stores it plans to close. Employees at five Pizza Hut locations in Los Angeles County said they did not know if their stores would be affected.
In November, Yum said in a statement launched a “review of strategic options” for the Pizza Hut brand and hinted that it was considering a sale.
“Pizza Hut's performance indicates the need to take additional steps to help the brand achieve its full value, which can be better executed outside of Yum! Brands,” Chris Turner, the company's chief executive, said in the statement. “To truly leverage the brand we have built and future opportunities, we have made the decision to begin a comprehensive review of strategic options.”
In addition to Pizza Hut, Yum Brands owns Kentucky Fried Chicken; Taco Bell, founded in 1962 in Downey; and Habit Burger & Grill, founded in 1969 in Santa Barbara.
As of November, the company owned more than 62,000 restaurants in more than 155 countries and territories, and 98% were owned and operated by franchisees, according to its SEC. presentation.
Yum shares are up more than 20% in the last year.
For its fourth quarter, which ended December 31, the company reported a net income of $535 million, up from $423 million the previous year.
The company's financial results were boosted by the strong performance of Taco Bell and KFC, whose same-store sales increased 7% and 3% in the fourth quarter, respectively. In comparison, Pizza Hut's performance lagged, with comparable sales falling 1%.
The first Pizza Hut opened in 1958 in Wichita, Kansas. The restaurant quickly added locations and was acquired by PepsiCo in 1977.
In 1997, PepsiCo spun off Pizza Hut, Taco Bell and KFC into Tricon Global Restaurants Inc., according to the Washington Post. Tricon changed its name to Yum in 2002.
