Pizza Hut To Shut Shop? Sales Drop 7% as Struggles Deepen in US Market

Yum Brands, the parent company of Pizza Hut, announced on Tuesday (November 4) that it is conducting a strategic review of options for the struggling pizza chain, which continues to face stiff competition in an increasingly crowded market.

The move comes after Pizza Hut reported a 7% decline in U.S. sales, its largest market, which accounts for nearly half of the brand’s total revenue from about 6,500 stores. China remains its second-largest market outside the U.S.

Globally, Pizza Hut operates nearly 20,000 outlets across more than 100 countries. While international sales rose 2% in the first nine months of 2025, the overall brand performance has lagged behind rivals focusing on delivery and quick-service formats.

Yum Brands CEO Chris Turner said the company remains confident in its global strengths but acknowledged the need for a deeper look at Pizza Hut’s future. “The Pizza Hut team has been working hard to address business and category challenges; however, its performance indicates the need for additional action to help the brand realize its full value — which may be better achieved outside Yum Brands,” Turner said in a statement.

Pizza Hut has long struggled with its large, traditional dine-in model at a time when consumers increasingly favor fast pickup and delivery. The brand’s troubles date back several years — one of its biggest franchisees even filed for bankruptcy in 2020, leading to the closure of around 300 outlets.

Yum Brands has not set a deadline for completing the review and said it will not provide further updates until the process is finished. Meanwhile, Yum Brands’ shares rose nearly 7% during trading on Tuesday morning, following the announcement.