Pizza Hut closing hundreds of US locations as Yum! Brands reviews strategy — here’s what happened
A personal pan pizza from Pizza Hut. The chain is closing hundreds of US locations this year. Shannon O’Hara/Getty Images for Pizza Hut
Pizza Hut is set to shutter hundreds of U.S. restaurants as parent company Yum! Brands evaluates the future of the iconic pizza chain. The closures are part of a broader strategic review aimed at streamlining operations and addressing persistent challenges in a highly competitive pizza market.
During Wednesday’s earnings call, Yum! Brands — which also owns Taco Bell and KFC — confirmed that 250 underperforming Pizza Hut locations will close during the first half of 2026. This represents roughly 3% of its U.S. footprint, though the company has not released a detailed list of affected restaurants.
Yum! Brands Strategic Review
In November 2025, Yum! Brands announced a formal review of strategic options for Pizza Hut, which could include a potential sale. Executives indicated that the process will continue throughout 2026, with final decisions expected by year-end.
Analysts note that Pizza Hut has struggled to keep pace with competitors, particularly Domino’s Pizza, whose focus on delivery efficiency and digital ordering has helped it maintain a dominant position.
“Pizza Hut has faced headwinds in the U.S. market for several quarters, and we are taking proactive steps to address underperformance while exploring strategic alternatives,” a Yum! spokesperson said.
Challenges in the U.S. Pizza Market
Same-store sales for U.S. Pizza Hut locations fell 3% in the most recent quarter, reflecting continued struggles to attract and retain customers. The chain’s efforts to focus on value, including a $5 pizza promotion, have yet to generate a significant sales lift.
By contrast, Yum!’s other brands performed strongly. Taco Bell reported a 7% increase in same-store sales, thanks in part to innovative menu releases that appeal to younger demographics, high-income diners, and families alike. Meanwhile, KFC saw a modest 1% gain as it brings in Taco Bell executives to enhance menu innovation and regain market share lost to rivals such as Raising Cane’s and Chick-fil-A.
Despite Pizza Hut’s challenges, Yum! Brands’ overall stock performance has remained resilient, with shares up 6% so far in 2026, signaling investor confidence in the company’s broader portfolio and strategic direction.
Looking Ahead
The coming months will be pivotal for Pizza Hut, as Yum! Brands continues to evaluate its options for the brand. Industry watchers will be watching closely to see whether the chain focuses on renovating its existing restaurants, reducing underperforming locations, or potentially finding a new owner to revitalize its market position.
For now, loyal Pizza Hut fans may notice closures in select markets, but the brand continues to serve millions of Americans nationwide and remains a key component of Yum! Brands’ global restaurant portfolio.
Frequently Asked Questions (FAQ)
Why is Pizza Hut closing locations?
The closures are part of Yum! Brands’ review of underperforming restaurants and overall strategy for the chain.
How many Pizza Hut locations are closing?
Approximately 250 U.S. locations, representing around 3% of its footprint.
Will Pizza Hut be sold?
Yum! Brands is exploring strategic options, including a potential sale, but no decisions have been announced.
How is Pizza Hut performing compared to Domino’s?
Pizza Hut continues to struggle with same-store sales, while Domino’s maintains a strong position through delivery and digital strategies.
How are Taco Bell and KFC performing?
Taco Bell saw a 7% rise in same-store sales, while KFC grew 1% in the same period.