Pizza Hut, a pizza chain restaurant in the United States, is in the process of closing about 250 stores nationwide due to their poor performance.
The decision was announced during a conference call held by Yum! Brands, the parent company of Pizza Hut, on Wednesday, February 4th, as part of the company’s fourth-quarter financial report for the 2025 fiscal year.
Ranjith Roy, the Chief Financial Officer of Yum! Brands, mentioned during the call that the company is exploring strategies to improve Pizza Hut’s performance, including the targeted closure of approximately 250 underperforming stores in the first half of 2026.
Looking back at 2025, global same-store sales for Pizza Hut in that year’s quarter declined by 1%, as stated by Roy.
In the United States, Pizza Hut experienced the largest decline in same-store sales during the fourth quarter, dropping by 3%. However, Roy also noted that sales in other regions of the world, such as the Middle East, Latin America, and Asia, saw growth.
The company did not disclose which specific Pizza Hut stores in the U.S. will be closing.
As of the end of 2025, Pizza Hut had over 6,400 stores in the U.S. and approximately 20,000 restaurants globally.
Yum! Brands announced in November of last year that they had initiated a formal evaluation of strategic options for Pizza Hut, including a possible sale of the brand. It is expected that this evaluation will be completed within the current year.
In the fiercely competitive pizza market, especially facing the challenge from Domino’s Pizza, Pizza Hut has been struggling.
With a focus on delivery and takeout services, Domino’s has become the largest pizza chain brand globally, with nearly 22,000 stores.
Yum! Brands, the parent company of KFC and Taco Bell as well, has seen better performance from those brands compared to Pizza Hut. Particularly, Taco Bell has been a highlight, with same-store sales in the U.S. soaring by 7% in the fourth quarter, thanks to new menu offerings that have attracted various demographics, including high-income consumers and young diners.
Meanwhile, KFC’s operations in the U.S. continue to slowly recover, with a 1% increase in same-store sales in the fourth quarter.
Yum! Brands’ stock price has risen by 6% so far this year.