Pizza Hut plans to close approximately 250 U.S. restaurants in the first half of 2026 as its parent company,Yum! Brands,navigates a challenging market and a strategic review of the pizza chain’s future [[1]], [[2]]. The closures, representing around 3% of domestic locations, target underperforming stores as the brand contends wiht increased competition and declining sales [[3]]. While pizza Hut struggles, sister brands Taco bell and KFC are demonstrating stronger performance within the Yum! Brands portfolio.
Pizza Hut is closing hundreds of underperforming restaurants across the United States as its parent company undertakes a strategic review of the struggling pizza chain. The move reflects broader challenges in the competitive quick-service restaurant industry.
Yum! Brands, which also owns Taco Bell and KFC, announced Wednesday during its earnings call that approximately 250 Pizza Hut locations will be shuttered during the first half of this year. This represents roughly 3% of all Pizza Hut restaurants in the U.S.
The company did not release a specific list of the restaurants slated for closure.
Yum! Brands initiated a “formal review of strategic options” for Pizza Hut in November, including a potential sale. The company stated Wednesday that it expects the review to be completed later this year, but offered no further details.
Pizza Hut has faced ongoing headwinds in the highly competitive pizza market, particularly from market leader Domino’s Pizza.
The latest quarterly results were disappointing for the chain, with same-store sales in the U.S. declining 3%. A recent attempt to boost sales with a $5 pizza promotion did not yield the anticipated results.
In contrast, Taco Bell continues to perform strongly. The brand reported a 7% increase in U.S. same-store sales for the quarter, driven by a consistent stream of new menu items that appeal to a broad customer base, including higher-income consumers, young adults, and families.
KFC also showed signs of improvement, with U.S. same-store sales up 1%. The chicken chain has been recruiting executives from Taco Bell to drive menu innovation and regain market share lost to competitors like Raising Cane’s and Chick-fil-A.
Shares of Yum! Brands (YUM) are up 6% year-to-date.
