Pizza Hut, a global pizza chain known for its pan pizza and stuffed crusts, will be shuttering up to 250 locations during the first half of this year.
During a Feb. 4 earnings call, parent company Yum Brands Inc. announced the closures of “underperforming” locations globally, and said it expects Pizza Hut’s first-quarter core operating profit to decline about 15 percent as a result of costs tied to the restructuring.
While last year’s Pizza Hut international sales were up 1 percent, with particular strength in the Middle East, Latin America, and Asia, domestic sales languished. In November, Yum Brands announced a new targeted program in the United States, Hutt Forward, a plan for a longer-term acceleration of the brand.
“The Pizza Hut team has been working hard to address business and category challenges; however, 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,” Yum Brands CEO Chris Turner said in a November statement.
“To truly take advantage of the brand we’ve built and the opportunities ahead, we’ve made the decision to initiate a thorough review of strategic options.”
“This program includes alignment on a vibrant marketing program modernization of certain technology and franchise agreements,” Yum Brands CFO Ranjith Roy added during the earnings call.
“We have confidence in our Pizza Hut team and the steps they are taking. From a unit standpoint, we expect strong gross openings globally which are seasonally in the back half of the year.”
Roy noted that Yum also would be providing a one-time contribution to the marketing support. Roy said that the brand’s net capital expenses for 2025 were $293 million, consisting of $78 million in re-franchising proceeds and $371 million in gross capital expenses. Yet, the company was still able to return nearly $1.35 billion to shareholders last year.
In a Feb. 4 statement, Yum Brands noted that Pizza Hut opened 443 gross new restaurants in the fourth quarter of 2025 and 1,184 gross new stores across 65 countries for the year. However, same-store sales declined by 3 percent while core operating profit was down by 5 percent in the quarter, compared with the same period in 2024.
At the end of 2025, Yum Brands reported a total of 19,941 Pizza Hut locations, compared with 20,225 at the end of 2024. The pizza chain reported a 1 percent same-store sales growth last year, but a 4 percent same-store growth in 2024. Its profit margins were at 33.6 percent, compared with the 2024 margin of 37 percent.
Currently, there are still 6,700 Pizza Hut locations across the United States.
Regarding the company’s other brands—Kentucky Fried Chicken (KFC), Taco Bell, and Habit Burger & Grill—Roy noted they are meeting and exceeding sales expectations.
“We expect Taco Bell U.S. restaurant level margins of between 24—25 percent.”
Turner added that KFC “delivered a tremendous 2025,” with record openings for the full year. “Our franchisees are strong in KFC International,” he said.
Based in Louisville, Kentucky, Yum Brands Inc. and its subsidiaries operated a total of 62,000 restaurants in more than 155 countries. In 2024, the company was named to the Dow Jones Sustainability Index North America and Newsweek’s list of America’s Most Responsible Companies. In addition, KFC, Taco Bell, and Pizza Hut led Entrepreneur’s Top Global Franchises 2024 list.
