Additional Coverage:
- Pizza Hut closing hundreds of locations in 2026. Here’s why. (usatoday.com)
Pizza Hut to Close 250 “Underperforming” Locations in Strategic Overhaul
Pizza Hut is gearing up to shutter 250 of its “underperforming” U.S. locations by mid-2026. This move comes as parent company Yum! Brands, Inc. continues a comprehensive strategic review of the struggling pizza chain.
The closures are part of “Hut Forward,” a multi-pronged strategy aimed at revitalizing the brand, as revealed by Yum! Brands Chief Financial Officer Ranjith Roy during a February 4th earnings call.
This initiative includes a focus on “vibrant marketing, modernization of technology, and franchise agreements.” While specific details of these agreements remain confidential, Yum!
Brands stated to Restaurant Business Online that they are “pleased to be working in partnership with our franchisees on increased efforts to deliver near-term sales while advancing long-term strategy.”
This announcement follows a 3% decline in Pizza Hut’s U.S. store sales in the fourth quarter of 2025. In contrast, other Yum!
Brands’ establishments, like Taco Bell, saw a robust 7% increase in sales during the same period. Roy emphasized that the 250 closures represent a “very small portion” of Pizza Hut’s global footprint of 20,000 units, asserting it’s “the right answer for the brand as we move through the strategic review.”
Prior Sales Decline Paved the Way for Closures
The decision to close locations is set against a backdrop of ongoing challenges for Pizza Hut. Yum!
Brands, which also owns popular brands like KFC, initiated a formal review of “strategic options for the Pizza Hut brand” in November 2025, with a potential sale being one of the considerations. At that time, U.S.
Pizza Hut sales had already declined by 7%.
Yum! Brands CEO Chris Turner acknowledged the difficulties, stating in a news release, “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 realize its full value, which may be better executed outside of Yum! Brands.”
Broader Trend of Restaurant Downsizing
Pizza Hut is not alone in its decision to consolidate. As 2026 progresses, several other fast-food and fast-casual chains across the United States have announced plans to downsize, often citing a desire to reallocate resources to stronger-performing locations.
Among those announcing closures are Noodles & Company, Red Robin, and Wendy’s. Noodles & Company, in a January 12th news release, revealed plans to close 30 to 35 stores in 2026. Wendy’s also indicated in January that it continues to evaluate underperforming restaurants that may close this year.
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- Pizza Hut closing hundreds of locations in 2026. Here’s why. (usatoday.com)