Pizza Hut will close 250 U.S. restaurants in the first half of 2026 as part of a brand evaluation of the Yum brand amid challenges such as aging products.
Pizza Hut, known for family gatherings, celebrations and special occasions, is all set to see a significant makeover. The internationally renowned brand has announced the closure of 250 restaurants across the United States planned for the first half of 2026.
Pizza Hut plans to close 250 US restaurants as early as 2026, amid challenges including a 5% sales decline and competition from Domino’s. (Reuters)Yum Brands, the parent company of KFC, Taco Bell, and Habit Burger & Grill, based in Louisville, Kentucky, last year announced its intention to formally evaluate popular fast food chain Pizza Hut. This choice is a response to the problems faced by the brand, attributed to some products perceived by consumers as old or irrelevant, increasing competition that has led to a steady decline in sales in the United States, which fell 5% compared to last year.
“We have aligned stakeholders in a targeted program in the US, Hat Forward, which represents the bridge to the brand’s long-term acceleration,” said Ranjit Roy, CFO of Yum! Brand, according to a transcript provided by AlphaSense, Investopedia reported. “The program includes the alignment of a vibrant marketing program, certain technology modernization and franchise agreements, and a one-time contribution to Yum! marketing support, along with authorization to close certain underperforming units.”
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Pizza Hut to close 250 stores: A look at the challengesIts primary competitor, Domino’s Pizza, although it did not release its annual earnings, acknowledged a 2.7% increase in sales at its US locations in the first nine months of the previous year.
Pizza Hut ended 2025 with a total of 19,974 outlets worldwide, down from the previous year when the chain took on 251 additional stores. Last year, Pizza Hut opened nearly 1,200 locations in 65 countries; However, closings outnumbered openings.
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Pizza Hut faces ongoing challenges in a tough environment for the brand, battling increasingly fierce competition that offers more options, adapts more quickly to consumer demands, and is slowly losing market share to its biggest rival, Domino’s.
The chain’s strategic initiative focused on introducing a new five-dollar pizza, yet it did not achieve the expected success in the North American market, one of the few entities in the Yum Brands portfolio to experience a decline in market share. Despite the brands’ slump over the past year, Taco Bell and KFC have shown a slow but steady recovery, with Yum shares up 6% so far this year.
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