Pizza Hut Plans Closure of 250 Locations

Pizza Hut is set to close approximately 250 locations across the United States by the first half of 2026. This decision is part of an extensive review of the brand’s strategy, as highlighted by Yum Brands CFO Ranjith Roy during the company’s fourth-quarter earnings call for 2025.

Overview of Closure Plans

The closures are part of a program known as “Hut Forward,” which aims to modernize the brand and support long-term growth. Roy indicated that the closures would focus on underperforming stores as the company seeks to enhance Pizza Hut’s market position.

Performance Decline

• Pizza Hut experienced a 3% decline in same-store sales in Q4 of 2025.
• For the entire year, sales dropped by 5%.

This trend reflects ongoing challenges for the brand against its competitors in the pizza sector.

Current Store Count and Future Implications

According to Yum’s recent filings, Pizza Hut had approximately 6,360 locations in the U.S., accounting for about 32% of its global footprint. The planned closure of 250 units represents nearly 4% of these U.S. stores, marking a significant reduction for the brand.

Yum Brands Strategy

Yum Brands is conducting a thorough evaluation of strategic options for Pizza Hut, considering various paths, including a potential sale. CEO Chris Turner confirmed that the review is progressing as expected, with plans to conclude the evaluation within the year.

Financial Investments

The company has made significant investments in the review process, spending $36 million in 2025, which includes $32 million in the fourth quarter alone. Additionally, Yum wrote off $5 million in franchise incentive assets related to the restructuring of Pizza Hut.

Global Impact

Pizza Hut’s overall store count has decreased from 20,225 at the close of 2024 to 19,974 by the end of 2025. This reduction includes a noteworthy closure of 254 locations in Turkey, which followed the termination of the chain’s master franchising agreement in early 2025.

The upcoming closures and strategic reconsiderations represent a pivotal moment for Pizza Hut as it navigates a challenging business landscape in the competitive fast-food market.