Pizza Hut’s Parent Company May Sell the Chain
Pizza Hut could soon be sold as Yum Brands, its parent company, announced a formal review of strategic options for the brand. The company acknowledged ongoing challenges in a competitive pizza market but emphasized Pizza Hut’s enduring global presence and potential for growth.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets," said Yum Brands CEO Chris Turner.
Pizza Hut operates nearly 20,000 locations across more than 100 countries. Its international sales rose 2% during the first nine months of the year. China remains its second-largest market after the United States.
About half of Pizza Hut’s revenue still comes from the U.S., where it runs approximately 6,500 restaurants. However, domestic sales declined by 7% over the same period. Analysts suggest the brand’s legacy of large dine-in restaurants created difficulties as consumer preferences shifted toward speedy pickup and delivery services.
In 2020, one of Pizza Hut’s biggest franchisees filed for bankruptcy and shut down roughly 300 restaurants. As of this year, Pizza Hut accounts for 15.5% of the U.S. pizza chain market, down from 19.4% in 2019, according to data from Technomic, a food service analysis firm.
Author’s Summary
Yum Brands is reviewing the future of Pizza Hut amid slowing U.S. sales and changing dining habits, while international growth still shows moderate strength.