Pizza Hut’s Parent Company Considers Selling the Chain
Pizza Hut may soon change ownership as Yum Brands, its parent company, has announced a formal review of strategic options for the struggling pizza chain. The move comes as Pizza Hut faces tough competition in a saturated market.
"Pizza Hut has many strengths, including a global footprint and strong growth in many markets," said Yum CEO Chris Turner.
With almost 20,000 outlets in over 100 countries, Pizza Hut remains one of the world’s largest pizza brands. International sales have increased by 2% over the first nine months of the year, driven largely by performance outside the United States. China stands as the company’s second-largest market after the U.S.
However, the U.S. still generates nearly half of Pizza Hut’s total sales, with around 6,500 stores. Domestic sales dropped by 7% during the same period. The brand has long been hindered by its large dine-in restaurants, which lost popularity as consumers shifted toward faster pickup and delivery options.
In 2020, one of Pizza Hut’s major franchise operators filed for bankruptcy and closed 300 locations. According to data from Technomic, Pizza Hut’s share of the U.S. pizza chain market has declined from 19.4% in 2019 to 15.5% today.
Author’s Summary
Yum Brands is rethinking Pizza Hut’s future as it struggles in the U.S. market, with growth abroad unable to offset shrinking domestic sales and outdated operations.