E-Paper
Why is Pizza Hut closing 250 stores in the US? All on challenging phase
Pizza Hut will shut down 250 US restaurants in the first half of 2026 as part of Yum Brands' evaluation of the brand amid challenges like outdated products.
Pizza Hut, which is known for family gatherings, celebrations, and special events, is set to see a notable shift. The internationally renowned brand has announced the closure of 250 restaurants throughout the US, all planned for the first half of 2026.
Yum Brands, the parent organization of KFC, Taco Bell, and Habit Burger & Grill, based in Louisville, Kentucky, announced last year its intention to conduct a formal evaluation of the renowned fast food chain Pizza Hut. This choice is a response to the difficulties the brand has faced, which are attributed to some products perceived by customers as outdated or irrelevant, in addition to increasing competition that has consistently led to a decrease in sales in the US, culminating in a 5% drop compared to the last year.
“We have aligned stakeholders on a targeted program in the US, Hut Forward, that represents a bridge to a longer-term acceleration of the brand,” stated Ranjith Roy, the CFO of Yum! Brands, according to a transcript provided by AlphaSense, Investopedia reported. “This program includes alignment on a vibrant marketing program, modernization of certain technology and franchise agreements, and Yum! providing a onetime contribution to marketing support, along with the approval of some targeted closures of underperforming units.”
Also Read: Nancy Guthrie missing case: FBI and Sheriff examine fresh leads after finding ‘new message’
Pizza Hut to shut 250 stores: A look at challenges
Its primary competitor, Domino's Pizza, while it has not disclosed its annual earnings, is recognized to have experienced a 2.7% increase in sales at its US locations during the first nine months of the previous year.
Pizza Hut concluded 2025 with a total of 19,974 outlets globally, a decrease from the prior year when the chain boasted 251 additional stores. Last year, Pizza Hut launched nearly 1,200 locations across 65 nations; however, the number of closures surpassed the openings.
Pizza Hut has faced ongoing challenges in a tough environment for the brand, contending with increasingly fierce competition that provides more options, adapts more swiftly to consumer demands, and is gradually losing market share to its largest rival, Domino's.
The chain's strategic initiative has concentrated on introducing a new five-dollar pizza, yet it has not achieved the anticipated success in the North American market, being one of the few entities within the Yum Brands portfolio to experience a decline in market share. Despite the brand's downturn over the past year, Taco Bell and KFC have shown a gradual but consistent recovery, with Yum shares rising by 6% thus far this year
