Pizza Hut loses a slice of its US business: Will close 250 locations due to poor performance

Pizza chain Pizza Hut will close about 250 restaurants in the country by June, a move that will mainly affect underperforming locations, its parent company, Yum! Brands, reported during its most recent financial results presentation.

The announcement was made by Yum! Brands CFO Ranjith Roy in a conference call with investors, reported by Fox Business, where he explained that the closures are part of an effort to modernize the brand and improve its performance in the U.S. market.

The closures are "targeted closures of underperforming units," Roy said, as part of a corporate initiative called "Hut Forward."

A brand lagging behind Taco Bell and KFC

The decision comes at a time when Pizza Hut continues to face difficulties in the United States, unlike other brands in the group. According to data cited by Fox Business and company financial reports, Pizza Hut's comparable sales in the U.S. market have fallen, while Taco Bell and KFC recorded solid growth and sustained expansion.

Yum! Brands emphasized that the closures are not in response to an overall deterioration of the group. In fact, the company reported solid earnings and an increase in dividends, which reinforces the idea that the problems are concentrated in the Pizza Hut brand within the local market.

"Hut Forward": Renewal and possible rethinking

The "Hut Forward" plan aims to revamp marketing, update the restaurant model and improve franchise performance, in a context of changing consumer habits and increased pressure from operating costs, inflation and competition.

Yum! also acknowledged that it is evaluating broader strategic options for Pizza Hut, suggesting that the closures could be part of a deeper brand realignment in the United States.

According to the company, most of the closures will be concentrated in the first half of 2026, which will temporarily reduce the total number of locations before growth picks up again toward the end of the year.