Pizza Hut Closing 250 U.S. restaurants by mid-2026 as Yum! Brands shutters underperforming locations

Pizza Hut plans to close about 250 underperforming U.S. locations in the first half of 2026, a pullback meant to stabilize a brand that has struggled to regain momentum in a fiercely competitive pizza market. The closures—roughly 3% to 4% of the chain’s U.S. footprint—come as parent company Yum! Brands continues a formal review of strategic options for Pizza Hut, including the possibility of a sale.

The move is being framed as selective triage rather than a broad retreat: prune weaker stores, modernize operations, and refocus marketing while the company decides what the brand’s longer-term structure should be.

What’s closing, and when

The plan calls for approximately 250 closures in the U.S. during the first half of 2026, meaning the bulk of shutdowns are expected by late June 2026. Company executives have described these as “targeted closures” of units that are not performing to expectations.

Yum! Brands has not released a store-by-store list of locations slated to close, and timelines can vary depending on lease terms, franchise agreements, and local market conditions. Some communities may see abrupt shutdowns; others may see stores wind down closer to summer.

The business backdrop: sales slippage and a crowded field

Pizza Hut’s U.S. business has been under pressure for an extended stretch, with executives pointing to a need for sharper value messaging, improved execution, and stronger unit economics. The chain has faced headwinds from shifting consumer spending, intense discounting across quick-service dining, and a delivery-and-digital landscape where convenience expectations keep rising.

While the broader company has leaned into value-oriented promotions and menu strategy across brands, Pizza Hut’s U.S. performance has remained the softest part of the portfolio—one reason leadership is treating 2026 as a pivotal year for decisions on structure and investment.

The “Hut Forward” push: fixing the basics

The closures are tied to an internal turnaround effort often described as “Hut Forward.” In practice, that kind of program typically centers on three levers:

• Unit quality and economics: removing weaker stores that drag on averages and franchise profitability

• Technology and operations: improving ordering, throughput, and digital experience

• Brand positioning: marketing that clarifies value and differentiates Pizza Hut from rivals

The closures also reflect a franchise reality: even when demand is stable, weak store economics can force hard calls. Removing underperforming locations can lift averages and free up capital for remodeling, tech upgrades, and better-run stores.

Strategic review: why a sale is on the table

Yum! Brands began a formal strategic review of Pizza Hut in late 2025. The review explores options to help the brand “reach its full potential,” which can range from continuing internal restructuring to spinning off or selling all or part of the business.

A review does not guarantee a transaction, but pairing a strategic review with targeted closures is a common pattern: improve the asset’s health while leadership evaluates whether the brand’s best future is inside the current corporate portfolio or under different ownership.

What it means for customers, workers, and franchisees

For customers, the near-term impact is uneven: most markets will see no change, while some towns may lose their nearest Pizza Hut entirely. For workers, closures can mean transfers where nearby stores exist, or layoffs where they don’t—outcomes that often depend on local franchise operators.

For franchisees, the closures signal a push toward fewer, stronger restaurants and a clearer plan on how the brand competes. If store economics improve and technology investments pay off, operators can see better margins; if not, further consolidation remains a possibility.

Key numbers in the reset

Sources consulted: Yum! Brands, Reuters, Nation’s Restaurant News, Restaurant Dive