Post by : Bianca
Haleem
Yum Brands said it is reviewing strategic alternatives for Pizza Hut, opening the door to a possible sale as the chain faces intensified competition and weakening sales in the United States.
Pizza Hut operates close to 20,000 restaurants across more than 100 countries. International revenue rose about 2% during the first nine months of the year, with China now its second-largest market outside the U.S. Still, nearly half of Pizza Hut’s sales come from the United States, where roughly 6,500 locations recorded a 7% drop in sales over the same period.
The brand’s traditional focus on larger dine-in restaurants has been challenged by shifting consumer habits that favour faster pick-up and delivery options. In 2020, a major U.S. franchisee filed for bankruptcy and shut about 300 outlets. Pizza Hut’s share of U.S. pizza-chain sales has fallen to 15.5% from 19.4% in 2019.
Founded in 1958 in Wichita, Kansas, by two brothers who reportedly borrowed $600 from their mother, Pizza Hut grew rapidly into a familiar name. Its distinctive red roof was introduced in 1969, and by 1971 the chain led the global pizza market. PepsiCo bought the company in 1977, later separating it into Yum Brands in 1997.
Meanwhile, competitors emphasising delivery and carryout have expanded quickly. Domino’s, for example, has grown into the largest pizza chain worldwide with more than 21,750 outlets.
The possibility of selling Pizza Hut highlights broader shifts across the restaurant sector, where legacy dine-in formats must adapt to changing customer preferences and a tougher competitive landscape.
Yum Brands’ other banners, including KFC and Taco Bell, have continued to post stronger results: the company reported third-quarter revenue growth of about 8%, underscoring the contrast with Pizza Hut’s recent performance.
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