Pizza Hut’s Parent Company Considering Sale of the Chain
Pizza Hut may soon be up for sale. Yum Brands, the parent company of Pizza Hut, announced that it is conducting a formal review of strategic options for the franchise, which has been struggling to remain competitive in the crowded pizza market.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets," said Yum CEO Chris Turner.
As of now, Pizza Hut operates nearly 20,000 restaurants across more than 100 countries. The brand’s international sales rose by 2% in the first nine months of this year, with China serving as its second-largest market after the United States.
However, almost half of Pizza Hut’s global revenue still comes from the U.S., where it manages about 6,500 outlets. Domestic sales dropped 7% during the same period, revealing ongoing challenges in the American market.
Historically, Pizza Hut struggled with its legacy dine-in model, built on large sit-down restaurants, even as customer preferences shifted toward quicker delivery and takeout options. In 2020, one of its largest franchisees filed for bankruptcy protection, resulting in the closure of 300 restaurants.
Currently, Pizza Hut holds 15.5% of the U.S. pizza chain market share, a decline from 19.4% in 2019, according to food service consultancy Technomic.
Author’s Summary
Yum Brands is reviewing Pizza Hut’s future as the chain faces declining U.S. sales but steady global growth, reflecting a shift in consumer dining habits.