Outlook Business Desk
Yum Brands, the parent company that operates Pizza Hut, KFC and Taco Bell, said during Wednesday’s earnings call that it will shut 250 underperforming Pizza Hut outlets in early 2026, as per CNN, accounting for around 3% of its US network.
The brand began evaluating long-term options for Pizza Hut in November, even considering an exit from the business, but the company offered no fresh updates on Wednesday and said the review will wrap up later this year.
Pizza Hut continues to struggle in a crowded pizza market, falling behind Domino’s, after reporting another weak quarter marked by a 3% drop in US same-store sales despite pushing value deals such as a $5 pizza.
Yum! Brands Chief Financial Officer Ranjith Roy said during the February 4 earnings call that the closures form part of the Hut Forward strategy focused on marketing refresh, technology upgrades and franchise alignment.
Roy noted that the 250 US closures make up only a small share of Pizza Hut’s nearly 20,000 restaurants worldwide, calling the move a necessary step during the brand’s ongoing strategic review.
In a statement to Restaurant Business Online, Yum! Brands said it continues to work closely with franchise partners to boost near-term sales while progressing its long-term strategy, without disclosing agreement details.
Taco Bell performed strongly, reporting a 7% rise in same-store sales during the quarter, while KFC showed improvement in the US with same-store sales increasing by 1%.
Yum! Brands said KFC is using Taco Bell executives to improve menu innovation and compete better with rivals such as Raising Cane’s and Chick-fil-A, as the company’s shares rise 6% this year.