Pizza Hut Restructuring US Operations, Reducing Staff

Pizza Hut plans to close approximately 250 underperforming restaurants across the United States during the first half of 2026. This decision comes as parent company Yum! Brands Inc. (NYSE: YUM) continues a strategic review of the pizza chain.

Yum! Brands disclosed the planned closures during its fiscal 2025 fourth-quarter earnings call, framing the move as part of a program called “Hut Forward,” designed to improve near-term performance.

Strategic Review And Outlook

The Hut Forward initiative also includes aligning stakeholders around a new marketing plan, modernizing select technology, and updating franchise agreements. Yum! Brands plans to provide a one-time contribution to support marketing efforts related to the program.

Globally, Pizza Hut experienced a 1% decline in same-store sales for both the fourth quarter and the full year. However, Pizza Hut International showed positive momentum, with same-store sales increasing by 1% for the quarter and year, driven by strong performance in the Middle East, Latin America, and Asia.

Yum! Brands anticipates a decrease in the Pizza Hut unit count during the first half of 2026, while also targeting strong gross openings later in the year. The company reaffirmed its long-term growth targets, aiming for 5% unit growth and 7% system sales growth, excluding foreign exchange impacts. Yum! also intends to achieve at least 8% core operating profit growth over time.

Yum! Brands shares were trading higher by 1.82% at $162.47 per share at last check on Thursday.