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Yum! Brands explores Pizza Hut sale as US struggles persist
Yum! Brands is evaluating a potential sale of its Pizza Hut division, the company announced Tuesday, as the pizza chain grapples with declining sales in its core US market and intensifying competition from rivals like Domino's and Papa Johns.
US sales slump drags down global performance
Pizza Hut's same-store sales in the US-a market accounting for 42% of its global revenue-have fallen for multiple consecutive quarters, overshadowing growth in other regions. In the most recent quarter, global same-store sales at existing outlets dipped 1%, while competitors reported gains. Domino's, for instance, posted a 6% increase last month, citing successful promotional campaigns.
CEO Chris Turner, who assumed leadership last month, acknowledged the brand's challenges in a statement, noting that "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." The company is now exploring "strategic options" for the pizza division.
Contrast with Yum!'s stronger brands
Pizza Hut's struggles stand in stark contrast to Yum!'s other major chains. Taco Bell, known for its budget-friendly menu, saw same-store sales jump 7% in the latest quarter, while KFC-despite its own US challenges-recorded a 3% increase. Pizza Hut currently contributes roughly 11% of Yum!'s operating profits, operating about 20,000 locations worldwide, including 6,500 in the US.
Broader industry pressures
The fast-food sector has faced headwinds as inflation and a cooling labor market squeeze consumer spending. Younger diners, in particular, are showing signs of financial strain, according to recent comments from Chipotle executives. Turner described US consumers as "cautious but incredibly resilient," though he noted that even Taco Bell-a relative bright spot-has felt macroeconomic pressures.
Pizza Hut's woes extend beyond the US. In the UK, the chain is shuttering half its restaurants amid waning customer demand, as competitors like Domino's and Papa Johns capture market share with more agile strategies and trend-driven offerings.
Uncertain timeline for decision
Yum! has not disclosed when it will finalize a decision on Pizza Hut's future. Turner praised the brand's employees for "working hard to address business and category challenges," but the company's next steps remain unclear. Analysts suggest a sale could unlock value for shareholders, though the pizza chain's turnaround prospects hinge on reversing its US decline and adapting to shifting consumer preferences.
"Supplies have stabilized, but conservation remains essential."
Chris Turner, CEO, Yum! Brands (October 2025 analyst call)
