Another major restaurant chain is shrinking in parts of the U.S.<\/p>\n
Pizza Hut\u2019s parent company Yum! Brands plans to close 250 U.S. locations, or about 3% of its nationwide retail footprint, in the first half of 2026.<\/p>\n
Yum! Chief Financial Officer Ranjith Roy said on a Wednesday earnings call<\/a> that the \u201ctargeted closures of underperforming units\u201d are a part of what the company has dubbed its \u201cHut Forward\u201d strategy \u2014 which also calls for more marketing support and an update of the chain\u2019s technology and franchise agreements.<\/p>\n There are about 20,000 Pizza Hut locations worldwide, with roughly 6,400 in the U.S., according to the company\u2019s November Securities and Exchange Commission filing<\/a>.<\/p>\n Yum! didn\u2019t respond to a request for comment. <\/p>\n The company has not yet said which stores it plans to close. Employees at five Pizza Hut locations across Los Angeles County said they did not know if their stores would be affected. <\/p>\n In November, Yum! said in a statement<\/a> it was launching a \u201creview of strategic options\u201d for the Pizza Hut brand and hinted that it was considering a sale.<\/p>\n \u201cPizza Hut\u2019s 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,\u201d Chris Turner, the company\u2019s chief executive, said in the statement. \u201cTo truly take advantage of the brand we\u2019ve built and the opportunities ahead, we\u2019ve made the decision to initiate a thorough review of strategic options.\u201d<\/p>\n In addition to Pizza Hut, Yum! Brands owns Kentucky Fried Chicken; Taco Bell, founded in 1962 in Downey; and Habit Burger & Grill, founded in 1969 in Santa Barbara.<\/p>\n As of November, the company owned more than 62,000 restaurants across more than 155 countries and territories, and 98% were owned and operated by franchisees, according to its SEC filing<\/a>.<\/p>\n Yum! shares have risen by more than 20% in the last year.<\/p>\n For its fourth quarter, which ended on Dec. 31, the company reported<\/a> a net income of $535 million, up from $423 million the previous year.<\/p>\n The company\u2019s financial results were buoyed by strong performances from Taco Bell and KFC, which saw same-store sales increase by 7% and 3% in the fourth quarter, respectively. In comparison, Pizza Hut\u2019s performance lagged, with same-store sales falling 1%.<\/p>\n The first Pizza Hut opened in 1958 in Wichita, Kan. The restaurant rapidly added locations and was acquired by PepsiCo in 1977.<\/p>\n