Yum Brands said on Tuesday that it is putting its struggling Pizza Hut brand under review after its latest in a string of ugly sales results in the U.S.
The Louisville, Kentucky-based chain said it has started a “review of strategic options” for its pizza brand. The review will examine “a range of strategic options,” including a potential sale.
“The Pizza Hut team has been working hard to address business and category challenges, however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum Brands,” Chris Turner, who recently took over as Yum’s CEO, said in a statement.
"Our objective is to maximize value for Yum Brands and position Pizza Hut and its partners for greater success," Turner told analysts on Yum's earnings call Tuesday. "We believe a different approach will allow Pizza Hut to realize full potential."
Pizza Hut has struggled on and off for years. It lost its status as the country’s largest pizza chain to Domino’s in 2018. And its sales have slumped badly more recently. Same-store sales last quarter declined 6%, the eighth straight quarter of negative numbers for the Plano, Texas-based Pizza Hut.
A typical Pizza Hut location makes at least $200,000 less in revenue every year than other top chains Little Caesars, Domino’s or Papa Johns.
Its international business has been better. Same-store sales outside the U.S. increased 2% last quarter. But those sales have slumped recently, too. Pizza Hut's international sales declined more than 2% in 2024, according to data from Restaurant Business sister company Technomic.
Turner said that Yum decided to review strategic options “to truly take advantages of the brand we’ve built and the opportunities ahead.” Yum has not set a timeline for the strategic review.
Pizza Hut was the only one of the four Yum-owned concepts to report negative same-store sales in the U.S.
Taco Bell’s same-store sales rose 7%. KFC’s U.S. same-store sales rose 2%, its first positive number since 2023.
The fast-casual burger chain Habit’s same-store sales rose 3%, ending a streak of either flat or negative sales dating to 2022.
Yum’s stock rose nearly 2% in early morning trading on Tuesday.
UPDATE: This story has been updated to add information from the Yum earnings call.
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