Pizza Hut May Be Sold as U.S. Sales Continue to Slide

Pizza Hut, one of the world’s most recognized pizza chains, could be on the market. Parent company Yum Brands announced it is reviewing strategic options for the brand, citing challenges in the highly competitive U.S. pizza market.

With nearly 20,000 locations in over 100 countries, Pizza Hut remains a global presence. Its international sales rose 2% in the first nine months of this year, with China emerging as its second-largest market outside the U.S. But nearly half of Pizza Hut’s revenue comes from the U.S., where around 6,500 stores have seen sales drop 7% during the same period.

The chain has historically relied on large dine-in locations, a model that has struggled as consumer preferences shift toward fast pickup and delivery. In 2020, one of Pizza Hut’s major U.S. franchisees filed for bankruptcy, closing 300 stores. Today, the chain holds 15.5% of U.S. pizza chain sales, down from 19.4% in 2019.

Founded in 1958 in Wichita, Kansas, by brothers who borrowed $600 from their mother, Pizza Hut quickly became a household name. Its iconic red roof debuted in 1969, and by 1971, it was the top pizza chain worldwide. PepsiCo acquired it in 1977, before spinning it off into Yum Brands in 1997. Domino’s, focusing on delivery and carryout, has since become the largest pizza chain with over 21,750 stores globally.

The potential sale of Pizza Hut reflects broader trends in the restaurant industry, where traditional dine-in chains are struggling to adapt to evolving customer preferences. While the brand remains strong internationally, its U.S. operations face pressure to innovate and modernize in a fast-changing market.

Yum Brands’ other chains, including KFC and Taco Bell, continue to perform strongly, with third-quarter revenue up 8%, highlighting the contrast between Pizza Hut and its sister brands.