MASS CLOSINGS: Iconic pizza chain shutting down hundreds of storefronts
In this DML Report…
Yum! Brands, the parent company of Pizza Hut, announced plans to close approximately 250 underperforming U.S. locations by June 2026 as part of a modernization effort. The closures target weaker stores and align with the "Hut Forward" initiative, which focuses on updating marketing strategies, revising the restaurant model, and enhancing franchise operations. Chief Financial Officer Ranjith Roy stated during an earnings call that the company is also evaluating additional strategic options for the Pizza Hut brand to address ongoing challenges.
While domestic same-store sales for Pizza Hut have declined, in contrast to growth at sister brands Taco Bell and KFC, the chain continues to expand internationally. In the fourth quarter of 2025, Pizza Hut opened over 440 gross new locations globally, contributing to nearly 1,200 openings across 65 countries for the year. The U.S. closures represent a targeted response to brand-specific issues rather than broader company problems, as Yum! Brands reported strong overall earnings.
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For 2026, Yum! anticipates robust global gross openings for Pizza Hut, primarily in the second half of the year, with the first-half closures expected to cause a temporary dip in the overall store count before net growth resumes. Roy noted, "To help set expectations on key Pizza Hut business metrics for 2026, from a unit standpoint, we expect strong gross openings globally, which are seasonally weighted toward the back half of the year." The company has also raised its dividend, reflecting confidence in its portfolio performance.