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HomeFRANCHISE NEWSPizza Hut to Close 250 Locations as Parent Company Rethinks the Brand

Pizza Hut to Close 250 Locations as Parent Company Rethinks the Brand

Pizza Hut to Close 250 Locations: Pizza Hut, one of the most famous pizza chains in the United States, is about to get a lot smaller. Its parent company, Yum! Brands, announced plans to close 250 underperforming Pizza Hut restaurants across the country by mid-2026.

The news came during Yum! Brands’ investor call on Wednesday, where company leaders explained that the closures are part of a bigger plan to fix the struggling brand. Yum! Brands is based in Louisville, Kentucky, and also owns Taco Bell and KFC.

While Pizza Hut still has thousands of restaurants worldwide, these closures show just how tough the pizza business has become — and how much work Pizza Hut has ahead if it wants to stay competitive.

Pizza Hut to Close 250 Locations (2)
Pizza Image Source : Order Pizza for Delivery from Pizza Hut India

Why Pizza Hut Is Closing So Many Stores

The decision to close hundreds of locations is part of a strategy called “Hut Forward.” According to Yum! Brands, this plan focuses on stronger marketing, better technology, and updated agreements with franchise owners.

Chief Financial Officer Ranjith Roy said the goal is to modernize Pizza Hut and stop losses from stores that are no longer performing well.

In the United States, Pizza Hut has struggled for several quarters in a row. Same-store sales — which measure how much existing restaurants are selling — dropped 3% in the most recent quarter. That means people are spending less at Pizza Hut locations than they were a year ago.

Pizza Hut has also had trouble standing out in a crowded pizza market. Domino’s Pizza continues to dominate with fast delivery and strong online ordering, while smaller local pizza shops and new delivery apps give customers more choices than ever.

Even Pizza Hut’s attempt to attract customers with a $5 pizza hasn’t made a big difference. Shoppers seem to be looking for more than just low prices.

What This Means for New York and Other States

Yum! Brands has not yet released a list of which Pizza Hut locations will close. That means customers and employees don’t yet know which restaurants are at risk.

In New York state alone, Pizza Hut currently has about 157 locations. Nationwide, there are roughly 6,700 Pizza Huts, according to recent data. Texas has the most locations of any state, with more than 900.

The 250 closures represent about 3% of Pizza Hut’s total U.S. footprint. While that may not sound huge, it’s still hundreds of restaurants and thousands of workers affected.

Yum! Brands said it began a formal review of Pizza Hut last November. That review includes looking at all options for the brand’s future — even the possibility of selling Pizza Hut entirely. The company expects to finish this review sometime this year.

For now, Yum! says it’s focused on making Pizza Hut stronger, not giving up on it.

Taco Bell and KFC Tell a Very Different Story

While Pizza Hut is struggling, Yum! Brands’ other chains are doing much better.

Taco Bell continues to shine. Its same-store sales jumped 7% in the most recent quarter. The chain has stayed popular by constantly releasing new menu items and attracting a wide range of customers, including young people, families, and even higher-income diners.

KFC is also slowly improving. Its U.S. same-store sales rose 1%, showing small but steady progress. The chicken chain has brought in leaders from Taco Bell to help refresh its menu as it competes with fast-growing rivals like Chick-fil-A and Raising Cane’s.

Investors seem encouraged by Yum! Brands overall. The company’s stock is up about 6% so far this year, suggesting confidence in its broader strategy — even if Pizza Hut remains a problem spot.

Pizza Hut was once the go-to name for family pizza nights and dine-in restaurants. Now, Yum! Brands faces a big challenge: deciding whether Pizza Hut can be reinvented for today’s customers or if the brand’s best days are behind it.

Do you think Pizza Hut can make a comeback with new ideas, or has it lost too much ground to competitors like Domino’s? Share your thoughts in the comments below.

News in Brief : Pizza Hut to Close 250 Locations

Yum! Brands plans to close 250 underperforming Pizza Hut locations in the U.S. by mid-2026 as part of its “Hut Forward” strategy to revive the struggling brand. Pizza Hut has seen declining same-store sales and faces intense competition from Domino’s, local pizza shops, and delivery apps. While the closures represent about 3% of its U.S. footprint, they signal deeper challenges for the once-dominant chain. In contrast, Yum!’s other brands, Taco Bell and KFC, are performing well. The company is reviewing Pizza Hut’s future, including a possible sale, but says it remains committed to fixing the brand for now.

History of Pizza Hut

Pizza Hut was founded on May 31, 1958, in Wichita, Kansas, by brothers Dan and Frank Carney. The brand grew quickly, began franchising in 1959, and became famous for its red-roof restaurants introduced in 1969. PepsiCo acquired Pizza Hut in 1977, later spinning it off into Yum! Brands. Over the years, Pizza Hut experimented with new concepts, early online ordering, and multiple rebrands. Despite global growth and cultural influence, the company has faced repeated closures and restructurings, including major dine-in shutdowns after 2019, reflecting its ongoing struggle to adapt to changing consumer habits.

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Aditya Singh
Aditya Singhhttp://ifranchisenews.com
Aditya Singh is a passionate business news writer with a strong interest in franchises, startups, and the corporate world. He is a B.Com student who believes that learning is the key to growth. Through in-depth articles on franchising and business trends, Aditya aims to share valuable insights with readers and help them understand the ever-evolving business landscape. His philosophy is simple: the more you learn, the more you grow.
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