Yum Brands, the parent company of Pizza Hut, announced on Tuesday that it is conducting a formal review of strategic options for the iconic pizza chain.
The move comes as Pizza Hut faces mounting pressure in an increasingly competitive pizza market. Yum CEO Chris Turner stressed that Pizza Hut continues to hold strong international appeal, calling it a “brand with significant strengths,” including its extensive global presence and growth potential. The company operates nearly 20,000 locations across more than 100 countries, with international sales rising 2 per cent in the first nine months of the year. China remains Pizza Hut’s second-largest market after the United States. However, the brand’s home market tells a different story. Roughly half of Pizza Hut’s revenue still comes from the US, where its 6,500 outlets saw a 7 per cent decline in sales during the same period. Once known for its family-style dine-in restaurants, Pizza Hut has struggled to keep pace as consumers increasingly favour quick delivery and carryout models. Shifting Market and Declining Share In 2020, one of Pizza Hut’s largest franchise operators filed for bankruptcy, forcing the closure of 300 stores. According to The Economic Times report citing data from Technomic, Pizza Hut’s market share in the US has dropped to 15.5 per cent, down from 19.4 per cent in 2019. “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 realise its full value, which may be better executed outside of Yum Brands,” said Turner. “To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options,” he added. A Legacy Brand At A Crossroads Yum Brands has not announced a timeline for completing the review and stated it will not make further comments until the process concludes. Following the announcement, Yum Brands’ shares rose nearly 7 per cent in afternoon trading. The company, which also owns KFC, Taco Bell, and Habit Burger & Grill, reported an 8 per cent rise in third-quarter revenue, buoyed by strong sales from its other chains. Founded in 1958 in Wichita, Kansas, by two brothers who borrowed $600 from their mother, Pizza Hut grew into a global symbol of casual dining. Its signature red roof, introduced in 1969, became an American icon. After being acquired by PepsiCo in 1977, Pizza Hut became part of Yum Brands in 1997 following a corporate spinoff. Today, Pizza Hut faces tough competition from Domino’s, now the world’s largest pizza chain with 21,750 stores, and from changing dining habits worldwide. The uncertainty around its future echoes a similar fate for another mid-century classic, Denny’s, which was recently sold to an investor group and taken private.
